TaxSaver Flexible
Benefits Plan
Tax Saver
Two Levels of Participation:
$ Premium Only
$ Spending Accounts
Premium Only
Allows employees to shelter
premiums for:
$ Health Insurance
$ Group Benefits Life Ins.*
$ Dental Insurance
$ Vision Insurance
*Excludes Dependent Premium
How do I save?
Monthly Gross
Pre-Tax Premium
Taxable Income
With FSA
$2,000.00
$482.88
$1,517.12
No FSA
$2,000.00
$482.88
$2,000.00
Taxes (21.5%)
Monthly Savings
Annual Savings
$326.18
$103.82
$1,245.84
400.00
$0.00
$0.00
Stipulations:
$ IRS rules state that you will not be
allowed to make changes to your
tax sheltered insurances unless you
incur a change in status or,
$ During the Annual Enrollment
Period.
Status Change Examples:
$ Change in Marital Status – Marriage,
Divorce, Legal Separation, Annulment
$ Change in the number of tax dependents
– Birth, Adoption, Death
$ Change in employment status of
employee, spouse, or dependents –
Termination, LWOP, FMLA, F/T to P/T
When May I Enroll?
$ During Annual Enrollment
or
$ Within 30 days of a change
in family status
Premium Only
$No Cost to Participate
$No Reenrollment
Spending Accounts
$ Health Care
$ Dependent Care
HC Eligible Expenses:
$ Medical deductibles and co-payments
(office visits, physicals, etc.)
$ Dental expenses
(check-ups, cleanings, braces)
$ Vision expenses
(exams, glasses, contacts)
$ Prescription drugs
How Do I Save?
With HC Acct
Annual Pay
W/out HC
Acct
$30,000.00
$30,000.00
Spending Account
Contribution
Taxes Paid (21.5%)
$2,000.00
0.00
$6,020.00
6,450.00
After Tax Expenses
0
2,000.00
Income
$21,980.00
$21,550.00
Savings
$430.00
HC Acct vs. Tax Deduct
• You may only claim medical expenses that
are in excess of 7.5% of your gross income
and you are required to itemize to take the
deduction (7.5% of a $30,000 is $2,250).
• The minimum for the HC account is $100
per year so you can reap the tax benefits
without having to contribute a large
amount of money.
HC Acct and Insurance
• Prescriptions
• Deductibles
• Co-Pays
• Co-Insurances
Spending Accounts
Dependent Care – Cost of
care for children &
elderly adults to enable
you to work.
DC – Eligible Expenses
• Day-Care for Pre-K age or under.
• Before/After School care for
children up to age 12.
• Summer Camp (up to age 12).
• Care for an elderly adult.
DC Example:
With DC Acct
Annual Pay
$30,000.00
W/out DC
Acct
$30,000.00
Spending Account
Contributions
Taxes Paid (21.5%)
$5,000.00
0.00
$5,375.00
6,450.00
After Tax Expenses
0
5,000.00
Income
$19,625.00
$18,550.00
Savings
$1,075.00
DC Acct vs. Tax Deduct
If you claim the DC expenses
as a tax deduct, the maximum
expenses allowed is $3,000.00
for one dependent and
$6,000.00 for two or more.
DC Acct vs. Tax Deduct
Gross Annual
Salary
% Credit of
expenses up
to max.
Maximum
1 dep / 2 or more
15,000.00 or
less
30,000.00
35%
1050.00 / 2100.00
27%
810.00 / 1620.00
43,001.00
20%
600.00 / 1200.00
Example:
• If your gross annual income is
$30,000.00 and you have one child
in daycare with annual expenses of
$5,000.00 your savings, under the
tax saver plan, would equal
$1,075.00 and your savings under
the Tax Credit would be $810.00.
Spending Acctount Fees
$ 5.10 per month
$ Must reenroll each
year
Annual Contribution
Annual Maximum:
*Health Care Acct. - $2,500 Max
*Dependent Care Acct. - $5,000 Max
Annual Minimum:
*HC and/or DC acct. is $100.00.
Flexibility
•Debit Card
•Change in Family Status
•Grace Period
Use It or Lose It
• Plan members should
estimate their expenses
carefully because
remaining funds at the
end of the plan year are
forfeited.
Questions?
For more information,
visit our website at:
www.lsuagcenter.com