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TaxSaver Flexible Benefits Plan - PowerPoint PPT Presentation
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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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Presentation Transcript
- Two Levels of Participation:
- Premium Only
- Spending Accounts
- Allows employees to shelter premiums for:
- Health Insurance
- Group Benefits Life Ins.*
- Dental Insurance
- Vision Insurance
- *Excludes Dependent Premium
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.
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
When May I Enroll?
- During Annual Enrollment or
- Within 30 days of a change in family status
- No Cost to Participate
- No Reenrollment
- Health Care
- Dependent Care
- Medical deductibles and co-payments
- (office visits, physicals, etc.)
- Dental expenses
- (check-ups, cleanings, braces)
- Vision expenses
- (exams, glasses, contacts)
- Prescription drugs
- 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.
- Prescriptions
- Deductibles
- Co-Pays
- Co-Insurances
Dependent Care – Cost of care for children & elderly adults to enable you to work.
- 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.
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.
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.
Annual Maximum:
*Health Care Acct. - $2,500 Max
*Dependent Care Acct. - $5,000 Max
Annual Minimum:
*HC and/or DC acct. is $100.00.
- Debit Card
- Change in Family Status
- Grace Period
- Plan members should estimate their expenses carefully because remaining funds at the end of the plan year are forfeited.
