Section 125

ProPlus 125

Under Section 125 of the Internal Revenue Service Code, this plan allows you to pay for group health premiums, other qualified insurance premiums, unreimbursed medical costs, child and dependent care costs and more...all with tax-exempt dollars! You'll have more take home pay and can create an additional retirement plan with the money you'd otherwise give to Uncle Sam in taxes.

Premium Only Plan

This account allows you to pay for your required contribution toward benefits that are offered through employment with tax-exempt dollars. Benefits such as health, dental, vision, long-term disability, and cancer insurance. By tax-exempting your benefits you pay less in federal, state and FICA taxes. By doing this you bring home more pay!

Unreimbursed Medical Account

This account is for expenses that your health insurance does not pay such as your health insurance deductible, your co-insurance (% not paid by insurance), co-payments, vision care, routine exams, prescription drugs, dental costs, and more. (See the list of covered expenses). All you must do is figure out what expenses you will incur during the plan year for you and your family unit and have this amount tax-exempted from your paycheck.

Dependent Care Account

This account allows you to set aside money to pay for your dependent care costs for the plan year. This includes payments to a licensed daycare, a private sitter, or even Grandmas. All we need is the Federal Tax ID number or a social security number.

You can also use this account for an adult that is disabled or mentally incapable to take care of themselves. This person must live in your home and require someone to watch them while you are at work.

How Do These Accounts Work?

The unreimbursed medical, dependent care and private policy plan account is set up in the following steps:

• - You decide upon an annual amount you want to tax-exempt out of your paycheck.
• - This amount is then divided by the number of pay periods you have during the plan year.
• - The money is deducted from your paycheck tax-exempted and is set-aside in a checking account.
• - This money is available for your use during the plan year for medical costs, dependent care costs, and health premiums you pay for out of your pocket.
• - The entire amount you elect for the plan year in the unreimbursed medical account is available to you at anytime. This amount has to be advanced by the employer for you to use, even if you have not had the amount taken out of your paycheck. This is a risk to the employer.
• - The dependent care and private policy plan account is not advanced. You must have the money in your account to be reimbursed.
• - When a medical, dependent care or a private policy plan expense is incurred, you must get a receipt for the expense and provide our office with the receipt and completed voucher. The check will be processed according to our procedural guidelines. You may fax, mail or bring in your receipts and completed voucher as often as you wish.

Remember Accuracy Pays!

Money set aside for any one benefit during the plan year must be used for expenses covered during that plan year. If you overestimate, any money left in the accounts will remain with the employer.

You will have 90 days after the end of the plan year to clear out your accounts. Any receipts that you turn in must have a date of service for that plan year.