Flexible Spending Plan (IRS) Code – Section 125 Clause Samples
The Flexible Spending Plan (IRS) Code – Section 125 clause establishes an employer-sponsored benefit program that allows employees to set aside pre-tax earnings for eligible expenses such as healthcare or dependent care. Under this plan, employees elect a specific amount to be deducted from their paychecks before taxes are calculated, which can then be used to reimburse qualified expenses throughout the year. This arrangement reduces employees' taxable income, resulting in tax savings, and provides a structured way to manage predictable out-of-pocket costs, thereby enhancing overall benefits flexibility and financial planning for participants.
Flexible Spending Plan (IRS) Code – Section 125. The District shall provide a Flexible Spending Plan, in accordance with the provisions of the Internal Revenue Service Code, Section 125. Such plan shall include a premium payment account, an unreimbursed medical expenses account, and dependent care expense account. The cost of providing the FSA will not exceed the savings generated by the FSA. If the costs do exceed the savings, the parties will meet and review the viability of continuing the FSA.