Maximizing Your Savings - Additional Voluntary Tax Sheltered Plans
Maximizing Your Savings –
Additional Voluntary Tax Sheltered Plans
Tax$ave Program and Eligibility
The Tax$ave Program is a benefit available under Section 125 of the Federal Internal Revenue Code. It allows eligible employees to set aside before-tax dollars to pay for certain medical, dental, and dependent care expenses. Refer to the Flexible Spending Account (FSA) Plans and Premium Option Plan (POP) below for detailed information.
Employees who are eligible to participate in the New Jersey State Health Benefits Program may participate in the Tax$ave Program.
Flexible Spending Accounts (FSA)
New Jersey State Employees Tax Savings Program (Tax$ave) Unreimbursed Medical and Dependent Care Flexible Spending Accounts. FSAs are an IRS approved way to be reimbursed for eligible expenses tax-free. They are a great way to maximize your savings on income and Social Security taxes. See the overview information below. If you wish to enroll in an FSA plan, click Enrollment Options immediately below.
The Unreimbursed Medical Spending Plan
- allows employees to set aside pre-tax dollars for eligible medical, prescription, and dental expenses not covered by insurance plans
- maximum annual limit (up to $2,500)
- re-enrollment required every year during Open Enrollment
- new hires must enroll in the Unreimbursed Medical Spending Plan within 30 days of hire (there is a 60 day waiting period for Unreimbursed Medical FSA eligibility and a 30 day waiting period for Dependent Care FSA eligibility).
- allows employees to set aside pre-tax dollars for eligible dependent care expenses
- eligible dependents
- maximum annual limit (up to$5,000)
- re-enrollment required every year during Open Enrollment
- new hires must enroll in the Dependent Care Plan within 30 days of hire (there is a 30 day waiting period for Dependent Care FSA eligibility).
Enrollment Procedure
- eligible employees who did not enroll at time of hire may enroll in October during the Open Enrollment Period, coverage is effective January 1st of the following year
- complete a Flexible Spending Accounts Election Form
Premium Option Plan
- allows employees to pay any State Health Benefits Program medical and/ or dental premiums with before-tax dollars
- enrollment is automatic in POP, unless a declination of POP form is completed
Commuter Tax$ave Program
The New Jersey Employees Commuter Tax Savings Program (Commuter Tax$ave), is another voluntary tax sheltered plan that allows eligible employees to set aside pre-tax dollars to pay for eligible mass transit and commuter parking expense. Pre-tax dollars are not subject to federal taxes.
Plan Highlights:
- Up to the monthly limit can be deducted from salary to pay for mass transit communication costs to and from work (mass transit includes, train, bus, ferry and vanpool expenses)
- Up to the monthly limit to pay for parking at work or at park and ride sites*
- Deductions are not subject to federal income taxes, Social Security taxes or Medicare Taxes
- A minimum of deduction of $15.00 for either mass transit or parking deductions
Commuter Tax$ave Program – monthly limit
- Up to $270 for mass transit commuting costs
- Up to $270 parking at work or park and ride sites*
Please review Enrollment/Change/Termination Schedule for new enrollment or any changes.
* You cannot elect to defer University parking fees if you are already having pretax parking deducted from your paycheck.
Frequently Asked Questions
Q. Do I need to re-enroll in the Flexible Spending Account (FSA) or Dependent Care every year?
A. Yes, enrollment in the Unreimbursed Medical Plan and Dependent Care Spending Plan is not automatic and a new enrollment form is required during Open Enrollment in October with coverage effective January 1st of the following year.
Q. What happens if I do not use all the money in the Flexible Spending Account at the end of the calendar year?
A. Eligible expenses incurred between January 1st of the plan year up to March 15th of the following year maybe submitted up until April 30 of that year. Remaining funds will be forfeited.
Q. Could I change the amount of my dependent contributions during the year?
A. The Unreimbursed Medical and Dependent Care Spending Accounts can only be changed if there is a qualified event such as a marriage, birth, adoption or change in you or your spouse’s employment status. However, even under the Dependent Care Spending Account, changes may also be made if there is a change in dependent care expenses which can be validated.
Q. If there is a change in my commute, could I make a change in the plan?
A. Yes. The Commuter Tax$ave Program allows you to change your benefit if you move or alter your commuting pattern. If you enrolled through the Program’s online enrollment website, you will have an opportunity to set up your own Online Management Account at the time of enrollment or any time thereafter. You can use the Online Management Account at any time to modify your benefits if you change your commute.