Staff Policies and Procedures Manual
G. Health/dependent care banks
Reed College reserves the right to change, terminate or otherwise modify any or all provisions of the following benefits at any time and for any reason. This is a summary only; refer to the plan document for specific and complete information.
Regular full-time employees and regular part-time employees who work .5 FTE or more annually.
These banks are also known as a Section 125 plan. They allow the employee to pay through salary reduction (and therefore from pre-tax dollars) any qualified health-care related expenses not reimbursed by insurance plans and for certain dependent care expenses while the employee and spouse work.
The banks operate on a plan year basis, April through March. During the annual enrollment period, participating employees estimate the eligible dependent and health care-related expenses they will incur for the coming year. The annual amount will be divided by the twelve pay periods and an equal portion deposited to each employee's account each pay period.
IRS rules state that employees cannot change or stop the amount deposited to the account during the year, except for certain changes in family status that include birth, adoption, death, marriage, divorce, or termination of spouse or domestic partner's employment.
It is important to remember that the Internal Revenue Service (IRS) requires that any money remaining in this type of bank account at the end of the year must be forfeited.
Claim forms for reimbursement are available online or in the Human Resources Department.
last revised: 2/13/2012
last reviewed: 2/13/2012