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Smith's Flexible Benefit
Plans allow your medical and/or dental insurance premiums to be deducted from your
paycheck before taxes are taken out. In this way, you never pay federal, state,
and Social Security taxes on these premiums. The Flexible Benefits Plan also allows
you to set up accounts that help you save tax dollars on your out-of-pocket medical/dental/vision
care and employment-related dependent care costs.
The money you elect to set aside is taken from your
paycheck before taxes in equal increments throughout the calendar year. IRS regulations
state that any unused funds remaining in the accounts at year-end must be forfeited,
and the changes or terminations of contributions during the plan year can only be
made under specific conditions.
Medical Reimbursement Accounts
Health Care Spending Account - This account allows you
to set aside up to $4,000 per year on a pre-tax basis to pay for out-of-pocket health,
dental or vision care costs.
Dependent Reimbursement Accounts
Dependent Care Spending Account - To help with the high
cost of day care, this account allows you to set aside up to $5,000 of your pre-tax
earnings to pay for qualified dependent care expenses.
This benefit is administered by Crosby Benefit Systems,
Inc. To contact their customer service center call (800) 462-2235 or visit their
Web site at www.crosbybenefits.com. |
