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SASISASIBetter Benefits Solutions
125 Cafeteria Plans, Section 132 Transportation, Health Reimbursements, 401K Recordkeeping, etc.
What is a Section 125 Cafeteria “FSA” Plan?
It is an employer-sponsored plan which allows employees to pay for certain
qualified expenses on a pre-tax basis.
Types of plans:
Insurance Premiums
Out of pocket medical expenses
Dependent Care expenses
The Federal Government gives you a “tax break”. The IRS explains the rules and regulations of this type of plan in Code Section 125.
What are the advantages of an FSA Plan?
Reduce your taxes
Increase your take-home pay
Pay for rising healthcare expenses with pre-tax dollars
Monthly Income $3000
Medical Insurance Deduction -$ 300 (minus deduction)
Medical Expenses -$ 100 (minus expense)Taxable Income $2600Federal, State and FICA Taxes -$ 728 (minus taxes)
Monthly Take Home Pay $1872
Monthly Savings with 125 Plan $ 112
Yearly Savings with 125 Plan $1344
Example of tax savings on your paycheck stub
What is a Health Care Expense?
A healthcare expense is a medical expense not covered by your insurance. The IRS has decided that certain expenses are allowable in your Section 125 Cafeteria (FSA) Plan.
The full amount of your health care election is available to you at any time during the plan year regardless of the dollars that have been taken out of payroll to date. Any health care expenses pertaining to you, your spouse, and/or any dependents on your tax return are allowed.
Eligible Health Care Expenses
Medical and dental deductible and co-payments
Eye exams, contact lenses/solutions and glasses
Lasik Eye Surgery
Prescription Drugs
Dental Care (Orthodontia, cleanings, caps, gum disease, filings, etc)
Physical Therapy
Chiropractic Care
Hearing Aids
Smoking Cessation
Over-the-counter (OTC) Products
Full list of eligible expenses available on our web-site www.sasiplans.com
Ineligible Health Care Expenses
Cosmetic Procedures
Electrolysis or Hair Removal
Funeral Expenses
Health Club Dues
Household help
Nutritional Supplements
Maternity clothes
Personal Use Items
Teeth Whitening
Weight-loss Program not part of a specific disease treatment
Over-the-counter (OTC) Products
Ineligible OTC Products
• Allergy prevention and treatment • Antacids • Asthma medicines • Band-aids• Cold and flu remedies • Decongestants• Diabetic supplies • Lactose intolerance supplies • Pain relievers• Sleep aids
Eligible OTC Products
• Baby Products (e.g. formula, lotion) • Dental products (e.g. toothbrush, toothpaste, dental floss)
• Deodorant • Face & Eye Cream• Feminine Products (e.g. tampons)• Kleenex• Suntan Lotions / Sun Glasses• Teeth Whitening Kits• Vitamins
Dependent Care Spending Accounts
Use pre-tax dollars for dependent care expenses that incur while your and your spouse work, look for work or go to school.
Eligible Expenses:
•Licensed day care centers, nursery school, or day camp (overnight camp is not an eligible)
•Care for you child, who is a dependent under age 13, in or outside your home, by someone other than your spouse or dependent under age 19.
•Care of a physically or mentally disabled spouse or dependent, provided that the spouse or dependent spends at least eight hours per day in your home.
•You can review a full discussion of eligible expenses in IRS Publication 503.
How do I submit a claim for reimbursements?
You choose the method that works best for you to submit your claims to SASI.
Mail Fax E-Mail
Reimbursement Payments
You will receive your reimbursement by check or direct deposit.
Health care claims
You will be reimbursed 100% of allowable expenses up to
your maximum annual election thru your paycheck.
Childcare claims
You will be reimbursed 100% of allowable expenses
up to the amount that has been deducted from payroll.
Election Changes
In order to change your election you must have a “life event’ such as:
Marriage
Divorce
Birth or adoption of a child
Death of spouse or dependent
Change of employment (or coverage) of spouse
Use It or Lose It
Be careful about making your annual election for medical and dependent care expenses. Forecasting your expenses will reduce the risk of losing part of your annual election.
If money remains in your FSA at the end of the plan year plus the additional 2 ½ month grace period, you must forfeit it!. Most participants plan carefully, and forfeitures are infrequent and usually small.
Review your monthly statements or go the SASI Web Site at www.sasiplans.com . Check your remaining account balances regularly. Remember, expenses must be incurred within the plan year or the following 2 ½ month grace period.
CHOOSE YOUR ELECTION CAREFULLY…IF YOU DON’T USE IT, YOU LOSE IT.
SASI Secure Web-site
Once you are enrolled, you can log onto the web-site under employee login to create a personal log in. You will see:
Your personal account balances, check history, claims status, and historical transactions.
Claim forms, Summary Plan Description (SPD)
Allowable eligible expenses
Currents news and events
Frequently Asked Questions (FAQ)
www.sasiplans.com
Questions ??
Any questions please call SASI
at 1-800-752-3539
7:30a.m. to 4:30p.m CTS
or e-mail us at
SASISASI
