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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 $2,500 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.
Smith uses Benefit Strategies to administer our flexible spending account plan. To contact the customer service center for Benefit Strategies call (888) 401-FLEX (3539) or visit their Web site at www.benstrat.com.
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