Section 125 plans - POP and FSA
Make your employees benefits more affordable with Premium Only
Plans and Flexible Spending Accounts administered by Ameriflex, a
pioneer in FSA debit card technology. Premium Only Plans are made
possible by Internal Revenue Code Section 125.
Premium Only Plans
When using a premium only plan, you may choose qualified insurance
coverage and pay the premiums with pretax dollars. These pretax dollars
are subtracted from your gross earnings before taxes are taken out, thus
lowering your taxable income
With a premium only plan:
• Your benefits are more affordable.
• Your spendable income increases.
• You pay less in taxes.
Flexible Spending Accounts
If you're one of the many people who spend money on medical
expenses or the care of dependents, a Medical Flexible Spending
Account (MFSA) or Dependent Care Spending Account (DCSA) can make
these expenses more affordable. These valuable benefits are available
through your employer’s flexible benefits plan and are qualified under
Code Section 125 of the Internal Revenue Code.
If you participate, you will elect to have a specified amount of pretaxed
money deducted from your paycheck each pay period. These dollars are
subtracted from your gross earnings before taxes and put into a flexible
spending account. After you submit a receipt for a qualified expense, you
will be reimbursed from this account. To be reimbursed for a dependent
care expense, you must have contributed the funds and incurred the
service. The full annual election of your MFSA is available from the first
day of the plan. MFSA claims must be incurred within the time period
specified in your summary plan description. By contributing pretax
dollars to a reimbursement account, you lower your taxable income;
therefore, you pay less in taxes and increase your spendable income!
Click here for more information on eligible expenses for flexible
J. Donnell Starrett, Inc.
3007 Pine Needle Road, Suite 204
Augusta, GA. 30909