Financial Services - Section 125

The District offers Flexible Spending/Reimbursement Accounts which allows employees to set aside a portion of their gross earnings through payroll deduction, on a pre-tax basis, to pay for dependent care or health care expenses not covered by their medical and/or dental plan. A Participant may not review the rate of his/her contributions or discontinue making elective contributions except as follows:

• Termination of Employment

• Dependent Spending Account Only: Change in family status occurs (marital status, change in number of tax dependents, change in employment status of employee or spouse, etc.)

NOTE: In accordance with IRS regulations, unused contributions to reimbursement accounts are forfeited at the end of the plan year. These monies cannot be returned to the participant as taxable income nor carried over to the following plan year.

Enrollment

Benefit eligible employees may enroll within 30 days of their hire date or during the annual open enrollment period for the following plan year (calendar year).

Medical Expense Reimbursement – Up to $2,500 per Plan Year

The medical expense reimbursement allows an employee to be reimbursed for certain medical, dental, or vision expenses. These expenses may be incurred by the employee or the dependents of the employee. The major limitations are that the expenses must been incurred during the plan year, the employee must provide proof of the expenses, and the expense cannot have been reimbursed to the employee from any other source (i.e. insurance). There are limitations on the types of expenses that may be reimbursed. Contact the Benefits Office for additional information.

Dependent Care Reimbursement – Up to $5,000 per Plan Year

Designed to provide for reimbursement of certain employment-related dependent care expenses of the Participant.

Dependent is defined as:

• Care for a child under the age of 13

• Care for a disabled spouse for child who is physically or mentally incapable of caring for himself. (See plan document for additional information on disabled eligibility.)

Eligible Dependent Care expenses:

• Incurred for the care of a Dependent of the Participant or for related household services

• Paid or payable to a Dependent Care Service Provider

• Incurred to enable the Participant to be gainfully employed for any period for which there are one or more dependents with respect to the Participant

Employees are encouraged to consult with their personal tax advisor to clarify the impact of the Dependent Expense Reimbursement Account will have on their tax status.