125(k) Programs
An employee benefit arrangement allowed by IRS Code Section 125, under which employees are allowed to pay for certain employee benefits on a pre-tax rather than after-tax basis.
Premium Only
Employees may elect to have health, dental and life insurance premiums deducted before tax is calculated by opting for the premium only 125(k) plan.
Changes in this election are generally allowed only once a year, from September 1 annually through September 30 annually.
Unreimbursed Medical Expense Account (URM) – Flexible Spending
Employees working 20 or more hours per week may elect to have pay reduced pre-tax to pay for medically necessary out-of-pocket health related expenses. Examples include (but are not limited to) deductibles, co-payments, vision care and orthodontia.
- The plan year starts annually on January 1, (year) through December 31, (year) (the calendar year) the maximum annual contribution for the year 2020 is $2,750 per new limits from the Patient Protection and Affordable Care Act.
Note there is a 70-day “grace period”. The plan year ends annually on December 31st (year). If you have not used all your Unreimbursed Medical annual election amount, there is a 70 day grace period for you to incur medical expenses for the prior year’s plan and you have to the 90th day to turn your expenses in to American Fidelity for reimbursement on the prior year’s plan. This means that employees will have an extra 70 days during which a participant in the plan can incur medical claims and use any unused funds from the previous year to reimburse the cost of those claims.
Annual enrollment starts in Mid-October through the first week of December, for the Plan Year starting January 1, (year) through December 31st, (year) and it is necessary to re-enroll each plan year. Representatives from American Fidelity, the plan administrator will be contacting employees starting in Mid-October through the first week in December for enrollment for the next plan year.
Employees apply directly to American Fidelity to obtain reimbursement for medical costs. Claim forms are available at American Fidelity click to below to download the forms.
American Fidelity FORMS-click here
Access information about your flexible spending account or check the status of your claim on line. Go to www.AFAdvantage.com to register and obtain a PIN.
Dependent Day Care Expense Account (DDC) – Flexible Spending
Employees working 20 or more hours per week may elect to have their salary reduced to pay for child care costs or costs associated with a dependent, spouse, or elderly family member hwo is physically or mentally incapable of caring for himself or herself (if eligible under the Internal Revenue Code).
The minimum amount of deduction is $300 per Plan year and the maximum amount is $5000 per Plan Year.
Plan Year starts Annually on January 1, (year) through December 31, (year) . It is necessary to re-enroll each plan year by first week in December. Representatives from American Fidelity, the plan administrator will be contacting employees during Mid-October through the first week in December for enrollment for the next plan year.
Employees apply directly to American Fidelity to obtain reimbursement for dependent daycare costs. Claim forms are available at American Fidelity click below to download the forms. Or you can obtain the claim forms from the Business Office.
American Fidelity FORMS-click here
Access information about your flexible spending account or check the status of your claim on line. Go to www.AFAdvantage.com to register and obtain a PIN.