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TaxSaver Flexible Benefits Plan

TaxSaver Flexible Benefits Plan. Tax Saver. Two Levels of Participation: Premium Only Spending Accounts. Premium Only. Allows employees to shelter premiums for: Health Insurance Group Benefits Life Ins.* Dental Insurance Vision Insurance *Excludes Dependent Premium.

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TaxSaver Flexible Benefits Plan

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  1. TaxSaver Flexible Benefits Plan

  2. Tax Saver • Two Levels of Participation: • Premium Only • Spending Accounts

  3. Premium Only • Allows employees to shelter premiums for: • Health Insurance • Group Benefits Life Ins.* • Dental Insurance • Vision Insurance • *Excludes Dependent Premium

  4. How do I save?

  5. Stipulations: • IRS rules state that you will not be allowed to make changes to your tax sheltered insurances unless you incur a change in status or, • During the Annual Enrollment Period.

  6. Status Change Examples: • Change in Marital Status – Marriage, Divorce, Legal Separation, Annulment • Change in the number of tax dependents – Birth, Adoption, Death • Change in employment status of employee, spouse, or dependents – Termination, LWOP, FMLA, F/T to P/T

  7. When May I Enroll? • During Annual Enrollment or • Within 30 days of a change in family status

  8. Premium Only • No Cost to Participate • No Reenrollment

  9. Spending Accounts • Health Care • Dependent Care

  10. HC Eligible Expenses: • Medical deductibles and co-payments • (office visits, physicals, etc.) • Dental expenses • (check-ups, cleanings, braces) • Vision expenses • (exams, glasses, contacts) • Prescription drugs

  11. How Do I Save?

  12. HC Acct vs. Tax Deduct • You may only claim medical expenses that are in excess of 7.5% of your gross income and you are required to itemize to take the deduction (7.5% of a $30,000 is $2,250). • The minimum for the HC account is $100 per year so you can reap the tax benefits without having to contribute a large amount of money.

  13. HC Acct and Insurance • Prescriptions • Deductibles • Co-Pays • Co-Insurances

  14. Spending Accounts Dependent Care – Cost of care for children & elderly adults to enable you to work.

  15. DC – Eligible Expenses • Day-Care for Pre-K age or under. • Before/After School care for children up to age 12. • Summer Camp (up to age 12). • Care for an elderly adult.

  16. DC Example:

  17. DC Acct vs. Tax Deduct If you claim the DC expenses as a tax deduct, the maximum expenses allowed is $3,000.00 for one dependent and $6,000.00 for two or more.

  18. DC Acct vs. Tax Deduct

  19. Example: • If your gross annual income is $30,000.00 and you have one child in daycare with annual expenses of $5,000.00 your savings, under the tax saver plan, would equal $1,075.00 and your savings under the Tax Credit would be $810.00.

  20. Spending Acctount Fees $ 5.10 per month $ Must reenroll each year

  21. Annual Contribution Annual Maximum: *Health Care Acct. - $2,500 Max *Dependent Care Acct. - $5,000 Max Annual Minimum: *HC and/or DC acct. is $100.00.

  22. Flexibility • Debit Card • Change in Family Status • Grace Period

  23. Use It or Lose It • Plan members should estimate their expenses carefully because remaining funds at the end of the plan year are forfeited.

  24. Questions? For more information, visit our website at: www.lsuagcenter.com

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