Professional Benefits

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Professional Benefits Group, Inc.
1000 Chestnut Street Vestavia Hills, Alabama
35216 Phone [phone] Fax
205.822.8336 www.pbg-ala.com
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Flex School
Professional Benefits Group, Inc.
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of a Flex Program
Add the Program! (Sign-up today!)
Be Aware! (Know what you can deduct!)
Cash for You. (Savings!)
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Add the Program
What is the Program anyway?

• Commonly Called
• -Cafeteria Plan or Flexible Spending Plan
• Employee Benefit
• -Provided by your employer as an extra
  employee benefit to save you tax dollars
• -Completely voluntary
• -Payroll deducted

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Add the Program
Careful Budgeting is the Key

• Budget for future medical and dental expenses
• Co-pays
• Deductibles
• Vision exams
• Eyewear
• Budget for dependent care
• Be sure to notice the maximums!

Balance remaining is forfeited at years end.
Plan conservatively!
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Please Remember!
Once you make a Flex election, the deduction
cannot be changed or stopped until the next
enrollment period unless you have a change in
family status. For Example

• Marriage
• Divorce
• Birth/Adoption
• Change in employment
• Disability
• Death
• Change in medical/dental coverage.
• For example, a change of address (moving) which
  results in a change in your coverage and/or
  carrier.

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Be Aware! (Know what you can deduct!) It is as
easy as 1-2-3

• Medical and Dental Premiums
• Out of Pocket Medical Dental Expenses
• Dependent Care Expenses

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Be Aware!

• A Few Examples of Unreimbursed Medical Expenses
  allowed
• under the Flex Plan
• Medical and dental deductible
• Medical and dental co-pays, co-insurance
• Non-covered items
• Over reasonable and customary charges
• Vision exams, eyeglasses, contacts, supplies,
  
  
  prescription sunglasses
• Prescribed exercise equipment, Jacuzzi, special
  chairs or beds etc.
• Handicap Access-home, auto, TV, telephone, guide
  animal
• Prescribed over-the-counter drugs for a specific
  illness, or injury
• School tuition for disabled, handicapped

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Be Aware!

• A Few Examples of Unreimbursed Medical Expenses
  NOT allowed under the Flex Plan
• Cosmetic surgery
• Hair transplants
• Insurance premiums
• Daycare/dependent care
• Funeral expenses

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You must choose between the Flex Plan for
Dependent Care and The Dependent Care Tax
Credit on your income tax return You cannot use
both.
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Reminder Salary reduction means no FICA tax on
the pre-tax money paid toward FSA expenses.
Accordingly, your Social Security benefits at
age 65 will be slightly lower. Please see your
personal accountant for additional details.
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Cash for You. (Savings!)
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The Story of Jane and Fred
Jane takes her son Fred to the doctor for an ear
infection. She pays her co-pay, which for Jane
is 20. She is careful to receive a receipt to
file in the future. After leaving the doctor she
takes Freds prescription by the local drug store
to get it filled. She writes a 40 check for the
prescription. She is again careful to keep her
receipt. The next day at work she obtains a
claim form to complete for her expenses. She
completes the form, attaches her receipts and
mails it in. Within the next 10 business days
she will receive a check for 60.
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The Flex Plan will not cause coverage to change.
It gives you a Tax-Free way to pay for
expenses outside your coverage!
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Important things to remember when filing a claim

• Claim must have occurred within the current flex
  plan year.
• Claim must be filed within 3 months of the close
  of the Flex Plan year or within 3 months of
  employment terminating.
• You must have elected enough annual Flex dollars
  to cover your claim.
• Complete the claim form, enclose any necessary
  documentation and mail it.
• You will receive a check within 10 business days.

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Lets look at Janes Paycheck
Jane is married and makes 21,800 per year. She
claims two (2) dependents and is paid on a
monthly basis.
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Pre-Tax Deductions
Without Flex
With Flex
Gross Pay 1,800.00 1,800.00 Health Ins.
Premium 0.00 110.00 Dental Premium
0.00 6.00 URM Expenses
0.00 50.00 Daycare 0.00
200.00 Adjusted Gross Pay 1,800.00
1,434.00
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Tax Deductions
With Flex
Without Flex
Adjusted Gross Pay 1,800.00 1,434.00 Federal
75.42 38.82 FICA 116.60
88.91 State and Local 83.00
63.54 Total Tax 270.02 191.27 Pay
After Taxes 1,529.98 1,242.73
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Out Of Pocket Expenses
Without Flex
With Flex
Pay After Taxes 1,529.98 1,242.73 Health Ins
Premium 110.00 0.00 Dental
Premium 6.00 0.00 URM
Expenses 50.00 0.00 Daycare
200.00 0.00 Total
366.00 0.00 After Expenses 1,163.98 1,242.73
DIFFERENCE OF 78.75
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IN ONE YEARYOU WILL HAVE AN EXTRA945.00
Only an example. Will be different per
individual employee