Page 13 - Catasys Benefit Guide 2020-2021

Retirement Benefits and Tax Saving Benefits

401(K) Retirement Flexible Spending Accounts

This plan runs on calendar year
Cerity Partners | 401(k) January 1 through December 31
st
st
You are encouraged to participate in Catasys’ 401(k) plan.
This plan allows you to fund your retirement with pre-tax You can set aside money in Flexible Spending Accounts (FSA)
dollars. You can defer up to 100% of your annual salary to before taxes are deducted to pay for certain health and
IRS benefit maximums. If you are 50 years old or older dependent care expenses, lowering your taxable income and
during the plan year, you may contribute a catch-up increasing your take home pay. Only expenses for services
deferral. incurred during the plan year are eligible for reimbursement
from your accounts. You choose how you want to receive
Eligibility reimbursement for your eligible expenses. You may use a debit
 You can participate in the company’s 401(k) plan on card provided by PayPro Administrators, sign up for direct
the first day of the month following the completion of deposit to your bank account or you may have a check sent to
1 month of employment. your home. Please remember that if you are using your debit
 Employees who worked 500 hours or more will be card, you must save your receipts, just in case PayPro
eligible to participate. Administrators needs a copy for verification. Also, all receipts
should be itemized to reflect what product or service was
Auto-Enrollment purchased. Credit card receipts are not sufficient per IRS
Upon eligibility, you will be automatically enrolled at 3% guidelines.
(pre-tax) salary contribution unless you elect otherwise.
This plan consists of 12 funds with varying target dates and FSA Annual Maximums - pre-tax per
investment objectives. year 2020

401(k) IRS Maximums 2020 2021 Health Care Spending $2,750
Dependent Care Assistance $5,000
Elective Deferral $19,500 Indexed for
Catch-Up Deferral (Age 50+) $6,500 Inflation FSAs offer sizable tax advantages. The trade‐off is that these
accounts are subject to strict IRS regulations, including the use‐it‐
It’s never too early or too late to start investing in or‐lose‐it rule. According to this rule, up to $500 of any unspent
your future. funds remaining in your account at the end of the plan year will
carry-over to the next plan year, and unspent funds above $500
will be forfeited. We encourage you to plan ahead to make the
Managing your 401(k) most of your FSA dollars. If you are unable to estimate your
Go to www.drs401k.com or call (800) 563- health care and dependent care expenses accurately, it is better
7166. to be conservative and underestimate rather than overestimate
your expenses.

13