The Firm provides a plan in which the employee is able to pay for specific expenses using his/her pretax dollars. The employee can specify an amount of his/her salary to be set aside in the Section 125 account for payment of medical expenses, dependent, and other premiums not associated with the Firm. The amount elected by a participating employee is not treated as taxable income, and is excluded from taxable earnings on payroll records and the W-2 form.
For the health care account only, you can carryover up to a maximum of $500 from one plan year to another. This does not decrease the maximum you are able to defer for the year, it will only add to it. Any funds over the $500 carryover limit will be forfeited at the end of the plan year. The Firm does not reimburse employees if unused funds are remaining in employee’s account.
The health care account does not have a grace period, which means you must incur all expenses you intend to seek reimbursement for by December 31st of the plan year.
Learn more about the Healthcare FSA and view all eligible expenses
Learn more about the Dependent Care FSA and view all eligible expenses
Overview:
- All full time employees, excluding equity members, are eligible on the first of the month after completion of 30-day introductory period.
- Participation is voluntary.
- Open enrollment occurs in November/December of each year.
- The plan takes effect on the first of the year.
- Firm does not reimburse employees if unused funds are remaining in employee’s account.
- For the health care account only, our plan allows a carryover provision up to a maximum of $500 from one plan year to another. This does not decrease the maximum you are able to defer for the year, it will only add to it.
- The health care account does not have a grace period, which means you must incur all expenses you intend to seek reimbursement for by December 31st of the plan year.
Maximum Elective Contribution for 2020:
- Dependent Care Expenses $5,000 Maximum
- Health Care Reimbursements $3,050 Maximum
If you participate in the HSA medical plan, you are eligible to participate in the FSA account and save for dental and vision expenses only.