Tax Saver Flexible Benefits Plan Tax Saver Two
Tax. Saver 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
How do I save? Monthly Gross Pre-Tax Premium Taxable Income Taxes (21. 5%) Monthly Savings Annual Savings With FSA $2, 000. 00 $482. 88 $1, 517. 12 $326. 18 $103. 82 $1, 245. 84 No FSA $2, 000. 00 $482. 88 $2, 000. 00 400. 00 $0. 00
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
How Do I Save? With HC Acct Annual Pay W/out HC Acct $30, 000. 00 Spending Account Contribution $2, 000. 00 Taxes Paid (21. 5%) $6, 020. 00 6, 450. 00 After Tax Expenses 0 2, 000. 00 Income $21, 980. 00 $21, 550. 00 Savings $430. 00
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.
DC Example: With DC Acct W/out DC Acct Annual Pay $30, 000. 00 Spending Account Contributions $5, 000. 00 Taxes Paid (21. 5%) $5, 375. 00 6, 450. 00 After Tax Expenses 0 5, 000. 00 Income $19, 625. 00 $18, 550. 00 Savings $1, 075. 00
DC Acct vs. Tax Deduct If you claim the DC expenses as a tax deduct, the maximum expenses allowed is $3, 000. 00 for one dependent and $6, 000. 00 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, 000. 00 or less 35% 1050. 00 / 2100. 00 30, 000. 00 27% 810. 00 / 1620. 00 43, 001. 00 20% 600. 00 / 1200. 00
Example: • If your gross annual income is $30, 000. 00 and you have one child in daycare with annual expenses of $5, 000. 00 your savings, under the tax saver plan, would equal $1, 075. 00 and your savings under the Tax Credit would be $810. 00.
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 $100.
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.
Questions? For more information, visit our website at: www. lsuagcenter. com
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