The IRS, in a recent Notice, has expanded the permitted election rules for health coverage under an I.R.C. Sec. 125 cafeteria plan. The Notice discusses two specific situations and whether a cafeteria plan participant can revoke the election. The one situation involves a participating employee who has hours of service reduced to get under the 30 hours/week threshold, but the reduced hours don't impact eligibility for coverage under the employer's group health plan. The other situation concerns an employee that is a participant in the employer's group health plan and wants out of that coverage to be able to buy health insurance in the Obamacare "marketplace." In both situations, the IRS said the election could be revoked. IRS Notice 2014-55.