Flex Plan 128


Flexible Spending Section 125 Plan:

1) PREMIUM CONVERSION A type of Section 125 plan, the sole purpose of which is to enable participants to pay their existing group health, dental, and other insurance premiums with PRE-TAX dollars.

2) FLEXIBLE SPENDING ACCOUNT An account funded by the employee's pre-tax contribution not subject to federal, FICA, state or local taxes, out of which employees may pay for unreimbursed expenses.

3) DEPENDENT CARE - EXPENSE ACCOUNT An account similar to a Flexible Spending Account, also funded by employee PRE-TAX salary, contributions, out of which employees pay expenses for the care of eligible dependents.

Must an existing insurance program be redesigned
to take advantage of a Flexible Benefits Plan?

No. A change is not required in either the group medical, health of group life plan, unless your organization would be changing them independent of adoption of the Flexible Benefits Plan. The premium payments made by the employees to cover their benefits are still handled through your payroll department - they are just convened to pre-tax rather than after-tax deductions, *State and local taxes may not be excluded in New Jersey and Pennsylvania.

A Flexible Savings Plan allows your firm to:

SAVE substantial tax dollars: as employees' gross compensation is reduced, the amount of Social Security taxes you'll have to pay immediately decreases!

PROVIDE a benefit package tailored to meet each employees individual needs!

INCREASE employee morale by enhancing the employees' benefit package and increasing employee take-home pay at no additional cost to the employer!