FLEXIBLE SAVINGS ACCOUNT (FSA)
A Flexible Spending Account (FSA) is an employee benefit plan that allows you to set aside a portion of your paycheck, on a pre-tax basis, to pay for non-reimbursable health care and dependent care expenses. All eligible family members are covered under this plan as long as they are claimed on your federal tax return. When you participate in a FSA, you reduce your taxable income and increase your take-home pay!
Two types of FSA plans are available, Health Care FSA (HCFSA) and Dependent Care (DCFSA). These plans were designed by the IRS to provide you with tax relief for non-reimbursable medical expenses and immediate tax savings for dependent care when there are two working parents. Health Care FSA pays for eligible healthcare expenses which generally include those products/services that are not fully covered by your medical, dental or vision insurance plan. A minimum annual contribution of $120 is required with the maximum FSA contribution of $2,650 per plan year (January 1 – December 31). NOTE: If you are enrolled in a qualified HDHP for your medical plan and contribute to a HSA account, your participation in the HCFSA becomes known as a “limited purpose FSA”. Under this plan the FSA reimburses for dental and vision expenses only. Dependent Care FSA pays for eligible child care expenses of dependent children under age 13 (or one who is incapable of self-care) and pays for eligible adult care expenses. A minimum annual contribution of $120 is required with the maximum contribution of $5,000, per household, allowed per plan year (January 1 – December 31). PLEASE NOTE: Dependent Care FSA - you cannot submit for reimbursement unless that prorated election amount has been deducted. This is unlike the Medical FSA whereas funds are available immediately.
401(k) / RETIREMENT BENEFITS
M.E. Wilson offers all eligible employees the opportunity to contribute 1 to 75% of their gross earnings (up to the legal maximum) on a pre-tax basis and invest them in a variety of investment alternatives. Employee contributions to the plan and their earnings are immediately 100% vested. All eligible employees may enroll in the 401k plan January 1, April 1, July 1, or October 1, after your initial 30 day waiting period.
TransAmerica has an automated voice telephone service available 24/7. Call the toll-free line at 1-800-401-8726 to monitor and manage your retirement account as follows:
Check your account balance and the balance of each of the funds in your account Exchange all or part of your current account balance from one fund to another Rebalance your account to its original investment allocation or apply a new investment allocation Redirect how your future contributions are to be allocated among available funds Contact a professional staff member to answer your questions during business hours
Please refer to the Summary Plan Description found on the network shared drive at I:\Employee Information\BENEFITS\Benefit Certificates and Policies\401k
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