Jump to content

Personal Care Accounts- Section 125 Treatment


Guest cpalmer

Recommended Posts

Guest cpalmer
Posted

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?

Posted

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)

Posted

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)

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...

Important Information

Terms of Use