Flexible benefit plan is a benefit program regulated under IRC 125 (a type of US labor law) that offers employees a choice between permissible taxable benefits (including cash) and nontaxable benefits such as life and health insurance, vacations, retirement plans and child/dependent care.
Although a common core of benefits may be required, the employee may determine how his or her remaining benefits dollars are allocated for each type of benefit from the total amount offered by the employer.
HSA is a tax-free account that can be used by employees to pay for qualified medical expenses. Contributions do not have to be spent the year they are deposited.
Money in the account earns interest and accumulates tax free, so the funds can be used now and in the future.
If an employee leaves the job, he or she can take the account with him or her and continue to use it to pay for qualified healthcare expenses.
To be eligible for a Health Savings Account, an individual must be covered by a High Deductible Health Plan (HDHP), must not be covered by other health insurance (does not apply to specific injury insurance and accident, disability, dental care, vision care, long-term care), is not eligible for Medicare and can’t be claimed as a dependent on someone else’s tax return.
Paid time off (PTO) is a benefit program granting employees a specific number of vacation or personal days off which that are paid by the employer.
The number of days is generally based on the employer’s policy for accrual of paid time off.
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Flexible Benefits Program is an individualized plans allowed by employers to accommodate employee preferences for benefits.
A flexible spending arrangement (FSA), or Flexible Spending Account, as they are commonly called, is one of a number of tax-advantaged financial accounts that can be set up through a cafeteria plan of an employer in the United States.
An employer-sponsored retirement plan where employee benefits are sorted out based on a formula using factors such as salary history and duration of employment.
Investment risk and portfolio management are entirely under the control of the company.
There are also restrictions on when and how you can withdraw these funds without penalties.
Vision plans are mostly supplements to HMO or PPO plans, or can be purchased separately. These cover basic eye examinations, and sometimes discounts on eye correction equipment, but do not include surgical procedures.