Good News About Taxes
You don't often see the words "good news" and "taxes" in the same sentence but Section 125 of the Tax Code allows most of the benefits described in this packet to be paid for with pre-tax dollars. That means that you are taxed on less income; so you take home more or you have more dollars available to purchase other benefits. That's good news.
Flexible Spending Accounts
A flexible spending account is a great way to pay for out-of-pocket medical expenses and / or daycare costs. When you enroll in a flexible Spending Account, you will be provided with a voucher packet. Each pay period, the amount you designated will be deducted from your paycheck and deposited into this account. To receive reimbursement, you simply need to complete and submit one of the expense vouchers from your packet. Flexible Spending Accounts allow you to save money because deductions are made from your paycheck before taxes are withdrawn. And because you know your daycare expenses and out-of-pocket medical expenses, you determine the amount that you contribute to this account. However, any money remaining in your Flexible Spending Accounts at the end of the year will be forfeited, so it's important to carefully estimate your needs.
Medical Expense Reimbursement
You can contribute up to $3000 per year to pay for eligible medical expenses.
Dependent Day Care Reimbursement
You can contribute up to $5000 per year to pay for eligible dependent day care expenses.
Please note you must re-apply each benefit year. Your American Fidelity representative is Briana Neal.
She can be reached at 1-800-437-1011.