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Hudson City School District

Hudson City School District. Flexible Spending Account Plan. Flexible Spending Account Plans (FSA) 2008. Health Care Reimbursement Account Dependent Care Reimbursement Account. Reimbursement Accounts. No Federal, State or FICA Tax Results in 25 to 30% savings on Expenses

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Hudson City School District

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  1. Hudson City School District Flexible Spending Account Plan

  2. Flexible Spending AccountPlans (FSA) 2008 • Health Care Reimbursement Account • Dependent Care Reimbursement Account

  3. Reimbursement Accounts • No Federal, State or FICA Tax • Results in 25 to 30% savings on Expenses • Funded Through Payroll Deduction • Hudson City School District pays for the administration costs

  4. Pre-Tax (use of Flex Plan) After-Tax $35,000 Salary $35,000 600 Pre-Tax 0 34,400 Taxable Income $35,000 8,600 Income Tax 8,750 499 Medicare 500 ___0_____ After-Tax Election 600___ $25,301 Spendable Income $25,142 Pre-Tax vs. After-Tax

  5. New and Improved Card Parameters

  6. Flexible Spending PlanImproved Claim Filing Procedures • Expanded receipt request periods • Direct Deposit Option on Dep. Care Claims • Grace Period for Claim Filings until March 15th • On line claim access

  7. Hudson City School DistrictHealth Insurance Plans • New Plan Design Options & Varying Deductibles and Co-Pays • Increase in the cost share amount for Prescriptions • Flex Plan Helps Immediately!

  8. Health Care Reimbursement Account • Deductibles • 20% or 30% Co-Insurance after Deductible • Prescription co-pays • Vision Exams, Glasses and Contacts • Dental Deductibles and Orthodontics • Up to $3, 500 per year in out-of- pocket costs !!!

  9. Health CareReimbursement Account • You tell us what you need at the beginning of each year • Entire balance is available at the beginning of the plan year • Debit card & Claim Kits are issued. • You pay Hudson City School District back through payroll deductions – Tax Free and Interest Free!

  10. Deductibles Co-Pays Rx Costs Orthodontia Contacts or glasses Contact lens solutions Birth Control Air conditioner for allergy relief School Physicals RK eye surgery Acupuncture Psychiatric Therapy Reimbursement for mileage @ .20/mile Examples of Eligible Health Care Expenses:

  11. Tylenol Excedrin Robitussin Vicks Vapo Rub Pepcid AC Claritin Neosporin Ointment Band Aids Over-the-counter expense items such as:

  12. How can a health care reimbursement account help you? Vision Example • You know that you will have $500.00 in out of pocket costs for lenses, frames, office visit and contacts this year and do not have a Vision Plan. • You can elect $500.00 in your flex account and use this election for vision care.

  13. How does the health care reimbursement account work? • Budget for known expenses only! • You must have a receipt to claim reimbursement. • Reimbursement checks are issued twice monthly. • You have until March 31, 2009 to claim expenses incurred from Jan – Dec 2008.

  14. How does the health care reimbursement account work? • Are you ever able to change your annual election once it has been made? • Qualifying Event

  15. The New Grace Period • If you have an account balance remaining in 2007 • New IRS law allows an additional 2 ½ months to incur claims in 2008 • Automatically pays your 2007 balance first. • Balance paid from 2008 election

  16. Dependent Care Expenses • Day Care Expenses • Baby-Sitting • Adult Day Care for Spouses and Parents

  17. Day Care Example • Currently paying $60 weekly in day care • 4 weeks in each month • Savings are roughly 25% on taxes • Savings= 1 week monthly for free • Increase take home pay by $60 mo.

  18. Dependent Care • Children under age 13 unless disabled • Caregiver cannot be family member • Need Tax ID number of care giver • Cannot deduct on taxes at year end • Up to $5,000 pre-tax per year ($2,500 if married/filing singly)

  19. Child Care Enrollment Your account may be used for all eligible dependents – whether or not they are enrolled in other insurance plans, so plan carefully We record your election and issue a card and claim payment kit to your home.

  20. Child Care Enrollment • If you elect to participate in this benefit, it will become effective January 2008. (expenses would have to be incurred between Jan – Dec of 2008) • Your benefits will continue throughout the plan year unless you have a qualifying event or change in status

  21. Where to get help? • Enrollment Materials • Http://www.ezflexplan.com/northcoast • North Coast Administrators 1-440-835-4900 or 1-800-677-6690 • Human Resources

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