Section 125 for Eligible Faculty Employees
Section 125
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.
- MEDICAL INSURANCE PREMIUM ACCOUNT- expenses used to pay the group health 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.
- HEALTH CARE EXPENSES ACCOUNT- expenses incurred by employee, spouse, or dependents that are not covered under a medical, dental or vision plan.
- 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 such as marriage, death, divorce, or the birth or adoption of a child.
- There is a change in employment status of the employee or spouse/domestic partner such as termination, commencement, or change in FTE.
If you do have one of the above qualifying events, please contact Human Resources to complete a revised Section 125 form.
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 during open enrollment each plan year to participate in Section 125 for the following plan year.
Upon election of the Section 125 FSA, eligible expenses can be reimbursed by completing the Polestar Benefits, Inc. Section 125 Request for Reimbursement form.
Employee Contribution
The minimum employee contribution is $240.00 per plan year toward the Section 125 health care reimbursement account.
College Contribution
The College's contribution toward the health care reimbursement account for the plan year shall be based upon the employee's insurance enrollment tier, on January 1, 2017, as follows:
- Employee Only - $150
- Employee + Spouse/Partner - $250
- Employee + Child(ren) - $250
- Full Family - $300
Eligible employees not enrolled in a College health insurance plan may still participate in Section 125 and will receive the Employee Only contribution amount of $150. There is no College contribution toward the dependent care expense account portion of Section 125.
Polestar Benefits, Inc Informational Packet
Section 125 Reimbursement Form