Guest cpalmer Posted November 7, 2000 Posted November 7, 2000 There is a new product being marketed called "Personal Care Accounts." These accounts effectively skirt the issue of "use it or lose it" by swapping employer and employee contirbutions when funding things like FSA's. Are these PCA's governed by the terms of Section 125? Section 213?
GBurns Posted November 8, 2000 Posted November 8, 2000 The "Personal Care Account" is not the product itself, it is a component of the package. It is also the name of only one of such concepts being marketed under various names by other groups. None of them fall under Sections 125 or 213, they all fall under Sections 105, 106 etc. George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
KIP KRAUS Posted November 8, 2000 Posted November 8, 2000 What benefits are provided by a PCA and are they tax exempt.
GBurns Posted November 9, 2000 Posted November 9, 2000 To add to Kip's question.. What is pre-taxed and is it done through a 125 Cafeteria plan? In looking at the literature it uses the phrase "employer and employee pre-tax contribution" but does not explain. Have they explained it to you, especially the "employer" portion? George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
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