Cafeteria Plan Accounts
Cafeteria Plans reduce taxes and let employers help pay for medical care.
Medical, health insurance, dental and child care expenses continue to rise. Thanks to Cafeteria Plans, your employer can pay some of those costs for you, and you can save by paying some or all of those expenses with pre-tax dollars. Your employer can pay up to $500 per year for you, tax free, or can ‘match’ what you deposit into reimbursement accounts before federal, state and social security taxes are withheld. Or you can set aside up to $2,550 yourself to pay your expenses on a pre-tax basis. This reduces your tax liability, and it’s easy to use those accounts to pay for your medical, dental, vision, dependent care and health insurance expenses.
Benefits of Cafeteria Plans include…
Voluntary benefits, such as accident and disability, dental, vision or group term life, will be paid pre-tax unless you instruct otherwise.
Up to $5,000 per household, can also be paid pre-tax if you choose.
Uncovered Medical Services
Medical, Vision and Dental expenses not covered by insurance can also be paid pre-tax, up to a limit of $2,550.