Contributions to plan

[Guest Chip]

Can someone explain to me the basics of how you determine what you need to contribute to your plan? Is it the excess of the charges over the credits that you tally up in your FSA? How does the 90% gateway rule come into play? Is that a component of the charges in the FSA if your plan falls below 90% or does that 90% rule determine your contribution?

Thanks in advance

Chip

[Guest jody303]

Chip,

The answer to your question can be more info than is practical to post on these boards. I'll try to give you a simple response, hoping it will be helpful.

The minimum required contribution to your plan will be the excess of the charges over the credits in the FSA. If the gateway % falls below 90%, then, generally, an additional charge will be added to the FSA (unless certain exceptions apply concerning the level of the gateway % in prior years and the current gateway % is not less than 80%).

I'm not sure how much info you want. Hope this helps.

[Guest Chip]

Thats exactly what I wanted to know. Someone mentioned to me that the it was purely the 90% rule that determined whether or not contributions were due. It appears that is only one component of the Charges.

Thanks

Chip