With health care costs rising faster than both salaries and inflation, wouldn’t it be great to find a way to reduce the out-of-pocket costs?
Wouldn’t it be great to find a way to pay those costs with before-tax dollars?
Well, it’s now possible to do both with one benefit plan – the Flexible Benefit Plan for UCC Ministries (generically referred to as the “Flexible Spending Account” or “FSA”).
The FSA consists of two reimbursement accounts where clergy and lay employees can elect to set aside a portion of their earnings, before federal income and FICA taxes are withheld, to pay for certain medical and dependent care expenses they will face in the coming year. Each pay period during the year, dollars are deducted from salary and placed in the FSA.
When an eligible medical expense is incurred, the participant files a claim and a reimbursement, up to the amount of the elected annual deferral, is paid from the FSA, even if that amount has yet to be deposited in the participant’s account. Dependent care expenses are reimbursed up to the balance in the dependent care reimbursement account.
A detailed list of eligible expenses can be found below, but may include
See how it is possible, at very little cost to UCC churches and church-related employers, to provide clergy and lay employees with an opportunity to keep more of what they earn.
Remember, these are expenses that people will be facing with or without the Flexible Benefit Plan, so why not choose now to help ease the burden?
|Without the Medical FSA / Dependent Care FSA||With the Medical FSA / Dependent Care FSA|
|Eligible Medical Expenses||$0||$3,050|
|Eligible Dependent Care Expenses||$0||$5,000*|
|Estimated Income Taxes**||$6,308||$4,814|
|Estimated FICA Taxes||$3,825||$3,209|
|After-Tax Expenses||$8,050||$ 0|
|Net Disposable Income||$31,817||$33,927|
|Savings Using the FSA||$2,110|
|*The Maximum allowable FSA election is determined by the IRS.
**Based on 2023 rates for Single filing status
To the extent not covered by the Medical and Dental Benefits Plan, expenses that qualify for reimbursement may include:
Dependent care expenses that may qualify for reimbursement may include: