Page 15 - 2024 Employee Benefits Guide

Section 125 Plan & Flexible Spending Accounts

A Flexible Spending Account (FSA) allows you to pay for eligible
expenses with pre-tax dollars under Section 125 of the Internal Revenue
Code. When you pay for these expenses with pre-tax dollars, you do not
pay Social Security, Medicare or federal income tax on your contributions.

Benefit premiums under section 125
Premiums for medical, dental and the optional cancer insurance will be
deducted from your pay on a pre-tax basis under Section 125 of the IRS
Code. You cannot change these elections during the plan year without a
qualifying change in status (refer to the Changing Your Elections section
for more information).

Health care FSA
A health care FSA allows you to set aside money on a pre-tax basis and
use that money to pay for eligible medical, prescription, dental, vision
and certain over-the counter medical supplies for you and/or your
dependents. Qualifying expenses are those permitted by Section 213 of
the Internal Revenue Code. The maximum contribution to a health care
FSA is $3,050 per plan year, and the minimum is $100 per plan year.
Dependent care FSA

A dependent care FSA allows you to set aside money on a pre-tax
basis and use that money to pay for work-related dependent day care
costs. If you are married, you can only use the account if both you
and your spouse work or, in some situations, if your spouse goes to
school full-time.
An eligible dependent is any member of your household for whom you
can claim expenses on Federal Income Tax Form 2441 (Credit for Child
and Dependent Care Assistance Expenses). Children must be under the
age of 13, and you must be the custodial parent. Dependents over age
13 must be physically or mentally unable to care for themselves and
must live with you for at least eight hours a day.
The following arrangements qualify as eligible expenses under the
dependent care FSA:

› A dependent (day) care center. The facility must comply with
applicable state and local laws if the facility provides care for
more than six individuals.
› An educational institution for pre-school children. For older
children, only expenses for non-school care are eligible.
› An individual who provides care inside or outside your
home. The individual may not be a child of yours under age 19
or anyone you claim as a dependent for federal tax purposes.
Note: Fees for registration, private schools, kindergarten, overnight
camps and extra activities are not eligible for reimbursement.
The minimum contribution to a dependent care FSA is $100 per plan
year. Federal law limits maximum contributions to dependent care
spending accounts. You may only contribute the lesser of: (a) $5,000 if
you are married filing a joint return, or you are head of a household, or

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