Medical expenses that are not reimbursed by your medical insurance such as co-pays, deductibles and coinsurance. Also, if your medical plan does not cover vision exams or hardware, chiropractic care, or similar treatments, these may be eligible for reimbursement under the Section 125 plan.

Amounts paid to a daycare provider either in or out of the home are eligible, as long as the provider is not a dependent or relative under the age of 19. Pre-school tuition is reimbursable, but tuition and expenses from grade K-12 schooling are not.

Only employees are eligible to participate. Self-employed individuals, partners, and shareholder employees of a Subchapter S corporation who directly or indirectly own more than two percent of the company's stock are ineligible to participate. A partnership, sole proprietor, or Subchapter S corporation may, however, offer a Section 125 plan to its employees.

Please refer to the list of Eligible and Ineligible Expenses for some of the most common expenses eligible for reimbursement under a Medical FSA . All services must be provided by a licensed practitioner. (This list is intended only as a summary; you should consult your plan documents for more information.)

Inside or outside your home by anyone other than your spouse, a person you list as your dependent for income tax purposes or one of your children under the age of 19. In a dependent care center or a child care center. (If the center cares for more than six children, it must comply with all applicable state and local regulations) By a housekeeper whose services include, in part, providing care for a qualified individual.

A Dependent Care FSA can reimburse you for care provided to a dependent child under age 13 (or a dependent age 13 or older who is physically or mentally incapable of self-care) in order for you, and if you are married, your spouse to work or attend school*. This includes before and after school care, preschool, summer day camp, and wages paid to a child care provider in your home, including employment taxes.

Please refer to the list below for some of the most common expenses not eligible for reimbursement under a Medical FSA. (This list is intended only as a summary; you should consult your plan documents for any other excludable services/items.)

Day care expenses are eligible whether provided by an individual or by an established day care center. If the provider is a day care center which regularly provides care for more than 6 people, the center must comply with state and local laws and regulations. The claim will be paid up to the amount available in the account. The participant will be reimbursed for the rest of the claim once the money is deposited in the account.

Payments by employers to Section 125 Plans, sometimes referred to as cafeteria plans, flexible benefit plans or mini-flex plans, which provide the opportunity for employees to elect to reduce their taxable compensation to pay for non-taxable benefits such as hospitalization, group term life insurance, group disability insurance, etc.

In order for a plan to qualify, employers must follow certain rules. Employees must be given a choice between at least one eligible nontaxable benefit and one eligible taxable one. The employer must provide plan documents and a summary of the plan in writing. The plan may only benefit employees and their dependents (disqualifying sole proprietors, partners and Subchapter S shareholders who are not technically employees of the company).

Participant elections for medical expense and dependent care reimbursement accounts must be made before the beginning of each plan year, or for newly-hired or newly-eligible employees, before their period of coverage begins. Once the plan year (or period of coverage) begins the benefit election cannot be cancelled or changed unless the participant experiences a valid Change In Status event.

HSA dollars may be used for qualified medical expenses incurred by the account holder and his or her spouse and dependents. Qualified medical expenses are expenses for medical care and are outlined within IRS Section 213(d). In summary the IRS Section 213(d) states that "the expense has to be primarily for the prevention or alleviation of a physical or mental defect or illness.

You must complete a request for reimbursement form available at www.pennwestern.com and submit it to Penn Western Benefits along with copies of bills, receipts, explanation of benefits from your health care plan, etc. Documentation must include date of service, type of service, and amount of charges. Copies of cancelled checks, credit card receipts, or balance forward statements are not adequate proof of claim. You may mail, fax, or e-mail your request to flex@pennwestern.com.

Please refer to IRS Publication 502 for more details about qualified medical expenses. In addition, over-the-counter drugs may be reimbursed from your HRA account in an HDHP.

Qualified flexible benefit programs allow employees to pay for certain eligible benefits with pre-tax dollars. This means that contributions are made before any (okay, almost any...to that in a moment) income and payroll taxes are calculated and deducted. On the federal level this translates into no FICA, Medicare, Federal Unemployment, or income tax. The FICA and Medicare savings apply both to the employee and the employer.

Section 125 first appeared in the tax code in 1978; however, many employers did not take advantage of it until 1986, which is when the tax laws for deducting personal medical expenses changed. With eflexgroup.com flex, all qualified medical deductions and dependent care expenses can be reimbursed with tax-free dollars.

All submitted expenses will be reviewed according to the regulations of Internal Revenue Code Sections 125 &129.

The HCSAccount may be used to reimburse health care expenses for you, your spouse and anyone who is claimed as a dependent on your federal tax return.