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Flex Plan (Cafeteria Section 125)
Flex Plan (Cafeteria Section 125)
Cafeteria 125 Flex Plan The Flex Plan makes it possible for you to pay for your out-of-pocket medical insurance premiums, medical expenses and dependent care with tax-free dollars. Click here for info on how to get the most out of your flex plan Medical Insurance Premium Plan The District sets you up on the Flex Plan automatically, if your out-of-pocket medical premium is more than $10 a month. Medical Reimbursement Plan You can set aside up to $3,600 per year to be reimbursed for your out-of-pocket medical expense incurred by you and your dependents. Qualified expenses include medical, dental, vision and other expenses that have not been fully paid by insurance, including some over-the-counter drugs for pain relief, arthritis, allergy, acid reflux. (This is a new IRS Ruling as of 9/3/03) Dependent Care Reimbursement Plan You can set aside up to $5,000 per year to pay for work-related dependent care costs for a child under age 13, or a disabled parent, spouse, or child of any age. Expenses can include babysitting and other types of day care. Click here for info on using the flex plan for daycare
You can figure your tax savings as follows:
| Medical reimbursement for braces | $2,400 | (12 months @ $200) | | Social Security taxes @ 7.65% | $ 184 | (12 months @ $15.30) | | Federal taxes (15% tax bracket) | $ 360 | (12 months @ $30.00)
| | Actual dollars spent for braces | $1,856 | | | Total tax savings | $ 544 | |
| Out-of-Pocket medical insurance premium | $1,200.00 | (12 months @ $100) | | Social Security taxes @ 7.65% | $ 91.80 | (12 months @ $7.65) | | Federal taxes (15% tax bracket) | $ 180.00 | (12 months @ $15.00) | | Actual dollars spent for ins. premium | $ 928.20 | | | Total tax savings | $ 271.80 | |
(Plan year November 1st – October 31st. The money you set aside must be used for reimbursement by January 15th. All money left in the Plan after January 15th, will not be reimbursable.) American Fidelity representatives will be in your building in October to sign you up. If you have questions, call Terry Massender, Payroll Officer at 241-5030.
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