Can I change my election after the plan year starts? 11/02/2017 You can only change your election if you have a qualifying change of status event. Qualifying events include: A change in the participant’s legal married status A change in the participant’s number of dependents For more information, see IRS Account Rules. […] Read More >
What if I am not billed for an expense until after the end of the claim period? 11/02/2017 After the claim period, there is a “Run-Out” period as specified in the SPD for submitting claims incurred during the claim period. This allows all eligible expenses up to the very last day of the claim period to be submitted and reimbursed. […] Read More >
What is the Claim Period? 11/02/2017 The Claim Period is the period specified in the SPD of at least 12 months that determines the beginning and ending dates of expenses eligible for reimbursement, occurring simultaneously with the plan year. In other words, it is the period of time that claims can be incurred and reimbursed from current plan contributions. The beginning […] Read More >
What is the Plan Year? 11/02/2017 The Plan Year is the 12-month period specified in the SPD that determines the beginning and ending dates of plan contributions (salary reductions). […] Read More >
What is the maximum amount of money I can elect annually for an FSA? 11/02/2017 For a medical FSA, the maximum annual election is set by your company and can be found in the Summary Plan Description (SPD). For a dependent care FSA, the maximum annual election is set by the IRS and is as follows: Married Filing Jointly or Single Head of Household, $5,000 Married Filing Separately, $2,500 […] Read More >
Does it save me more money to use a dependent care FSA or to receive the dependent care credit on my tax return? 11/02/2017 In general, the higher your adjusted gross income, the more likely it is that you will benefit more from participating in the dependent care FSA than from taking the tax credit. Note that the amount you elect to place in your dependent care account reduces your potential tax credit. […] Read More >
How do I benefit from participating in an FSA? 11/02/2017 There at least two significant ways to benefit from an FSA. The first is by taking advantage of the tax savings. By reducing your gross income, you pay less in taxes, take home more pay and have the freedom to choose how your money is used or invested. The second benefit is the “cash flow” […] Read More >
What is a Flexible Spending Account (FSA)? 11/02/2017 An FSA is an account into which your contributions (from pre-tax salary reductions) for medical and/or dependent care expenses are deposited. It functions like a checking account in that the cafeteria plan administrator (myCafeteriaPlan) actually writes you checks for the medical and dependent care expenses that you submit. […] Read More >
Does participating in a cafeteria plan reduce my Social Security benefits when I retire? 11/02/2017 Yes. Generally speaking, however, the benefit of the tax savings now more than outweighs the reduction in Social Security benefit after you retire. Discuss your specific financial situation with a tax consultant. […] Read More >
How does my net pay increase by participating in a cafeteria plan? 10/26/2017 A Cafeteria Plan is a benefit provided by your employer which allows you to contribute a certain amount of your gross income to a designated account or accounts before taxes are calculated. These accounts are for insurance premiums and medical or dependent care expenses not covered by your insurance, from which you can be reimbursed […] Read More >