Presentation on theme: "TaxSaver Flexible Benefits Plan. Tax Saver Two Levels of Participation: $ Premium Only $ Spending Accounts."— Presentation transcript:
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
With FSANo FSA Monthly Gross$2, Pre-Tax Premium$ Taxable Income$1,517.12$2, Taxes (21.5%)$ Monthly Savings$103.82$0.00 Annual Savings$1,245.84$0.00 How do I save?
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
Premium Only $No Cost to Participate $No Reenrollment
Spending Accounts $ Health Care $ Dependent Care
HC Eligible Expenses: $ Medical deductibles and co-payments (office visits, physicals, etc.) $ Dental expenses (check-ups, cleanings, braces) $ Vision expenses (exams, glasses, contacts) $ Prescription drugs
With HC AcctW/out HC Acct Annual Pay$30, Spending Account Contribution $2, Taxes Paid (21.5%)$6, , After Tax Expenses02, Income$21,980.00$21, Savings$ How Do I Save?
HC Acct vs. Tax Deduct 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.
HC Acct and Insurance Prescriptions Deductibles Co-Pays Co-Insurances
Spending Accounts Dependent Care – Cost of care for children & elderly adults to enable you to work.
DC – Eligible Expenses 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.
With DC AcctW/out DC Acct Annual Pay$30, Spending Account Contributions $5, Taxes Paid (21.5%)$5, , After Tax Expenses05, Income$19,625.00$18, Savings$1, DC Example:
If you claim the DC expenses as a tax deduct, the maximum expenses allowed is $3, for one dependent and $6, for two or more. DC Acct vs. Tax Deduct
Gross Annual Salary % Credit of expenses up to max. Maximum 1 dep / 2 or more 15, or less 35% / , % / , % / DC Acct vs. Tax Deduct
Example: If your gross annual income is $30, and you have one child in daycare with annual expenses of $5, your savings, under the tax saver plan, would equal $1, and your savings under the Tax Credit would be $
Spending Acctount Fees $ 5.10 per month $ Must reenroll each year
Annual Contribution Annual Maximum: *Health Care Acct. - $2,500 Max *Dependent Care Acct. - $5,000 Max Annual Minimum: *HC and/or DC acct. is $
Flexibility Debit Card Change in Family Status Grace Period
Use It or Lose It Plan members should estimate their expenses carefully because remaining funds at the end of the plan year are forfeited.
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