Section 125 Flexible Spending Account

Section 125 of the Internal Revenue Code allows for establishment of individual non-taxable accounts to pay for expenses associated with certain types of health and dependent care expenses.

Enrollment in Section 125 is offered to College employees on a calendar year basis for qualified health care and dependent care expenses incurred between January and December each plan year. Employees must re-enroll each plan year to participate in Section 125. Human Resources will facilitate an open enrollment process for Section 125 each year, typically during November. Employees must contribute at least the minimum of $240.00 each plan year through payroll deductions to participate in the Section 125 health care expense account. Once employees commit the minimum $240.00 to the Section 125 health care account, the College will contribute to the employee’s account based upon the enrollment level of the employee in the College’s health insurance program. For the 2006 calendar year, the College will match $150.00/year for Employee Only, $250.00/year for Employee + 1, and $300.00/year for Full Family coverage when employees participate in the Section 125 health care account.

1. MEDICAL AND LIFE INSURANCE PREMIUM ACCOUNT- expenses used to pay the group health and life insurance premiums not paid by employer (e.g. portion of premium that is deducted from your pay). Exception: The IRS will charge taxes on the portion paid by the college for domestic partner’s coverage.
2. HEALTH CARE EXPENSES ACCOUNT- expenses incurred by employee, spouse, or dependents that are not covered under a medical, dental or vision plan.
3. DEPENDENT CARE EXPENSE ACCOUNT- expenses relating to dependent care that enable the employee to work.

The election choices you make for Section 125 cannot be changed during the year except in the following cases:

- There is a change in your family status, including marriage, death, divorce, and the birth or adoption of a child.
- Termination, commencement of employment; or, change in FTE status of employee or spouse/domestic partner.
- Annual open enrollment period

If you do have one of the above qualifying events, please contact Human Resources to complete a revised Section 125 form.

Upon election of the Section 125 FSA, eligible expenses can be reimbursed by completing the OEA Choice Trust Section 125 Request for Reimbursement form. http://www.oeachoice.com/ (choose Forms in the menu)

After completion, the form and supporting documents are mailed directly to OEA Choice Trust for reimbursement.
List of eligible expenses