Saving Money With Pre-Tax Election Plans
The Y has implemented several plans that allow employees to take home more of their paycheck by paying for several things on a pre-tax basis. Through payroll deductions employees are able to lower their taxable income and pay for insurance premiums and parking or transit passes with pre-tax dollars.
YMCA Section 125 Plans
Health Savings Account (learn more here)
- Available to full-time staff who have selected a high-deductible health plan.
- The YMCA will make a monthly contribution to this account for eligible employees. The amount varies depending on the plan chosen and the number of dependents.
- Eligible employees can contribute additional dollars, pre-tax, to their health savings account up to the applicable federal limits.
- Funds in the health savings account carry over year-to-year. If employees leave the YMCA, the funds go with them.
- Funds in this account can be used to pay for eligible expenses including deductibles, co-pays, and other costs associated with medical, vision, and dental expenses.
For customer service on your health savings account please call 1-877-761-3399.
Medical Spending Account
Available to full-time staff who do not elect the high-deductible health plan. Employees can set aside up to $2,000 per year for un-reimbursed medical expenses.
Eligible expenses include deductibles and copays associated with the medical, dental, and vision expenses.
Dependent Care Expense Account - $5,000 per year
Allows an employee to pay for qualified dependent day care expenses with pre-tax dollars.
Transportation Expense Account
- Allows an employee to pay for employment-related parking and/or bus/train passes with pre-tax dollars. This does not include expenses that are paid for the Y.
- Up to $240 per month for parking expenses.
- Up to $125 per month for transportation expenses (bus and train passes).
Premium Conversion Plan
- The employee portion of health insurance premiums is paid with pre-tax dollars.
- IRS Rules Apply
- Money set aside for health care expenses cannot be used for dependent care expenses and vice versa.
- Employees may change their annual election(s) only if they experience a change in status such as marriage, divorce, change in the number of dependents, or change in employment status.
- At the end of the plan year, employees forfeit any unspent money in their Health or Dependent Care Accounts.
For Customer Service or to submit claims for Medical Spending Account, Transportation Account and Dependent Care Account:
Call - 269 342 1700
8am - 5pm ET Monday - Friday
Submit Claims to: Kushner & Company, 2427 West Centre Avenue, Portage, MI 49024