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Tax$ave, a benefit program available under Section 125
of the Federal Internal Revenue Code, allows eligible employees to set
aside before-tax dollars to pay for certain medical, dental, and dependent
care expenses, thereby avoiding federal taxes and saving money. An eligible
employee is any employee of the state, a state college or university,
or other state agency who is eligible to participate in the State Health
Benefits Program. Tax$ave consists of three separate component plans,
and an eligible employee may elect to participate in any combination,
all, or none of the plans. The three components of Tax$ave are:
- The Premium Option Plan (POP) allows employees to
pay any State Health Benefits Program medical and/or dental premiums
they have with before-tax dollars.
- The Unreimbursed Medical Spending Account Plan (UMSA)
allows employees to set aside money to pay for qualified medical and
dental expenses not paid by any group benefits plan under which they
or their dependents are covered.
- The Dependent Care Spending Account Plan (DCSA)
allows an employee to set aside funds to pay for anticipated expenses
related to dependent care required to permit the employee and spouse
to work.
Please keep in mind reimbursement requests to either
the Medical Expense or Dependent Care Spending Accounts must be submitted
no later than March 31 following the end of the calendar year for which
the account was set up. Any monies in your account not claimed by March
31 will be forfeited; therefore, it is critical that reimbursement requests
be submitted timely, as soon as possible after the expense is incurred.
Fringe Benefits Management Company (FBMC) is administering the Unreimbursed
Medical Spending Account and Dependent Care Spending Account portions
of Tax$ave for the Division of Pensions and Benefits.
Additional Information about the Tax$ave program is
available from the following sites:
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