The City Of Lewiston

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Flex Plan - Polestar Benefits Inc.
Overview
The City of Lewiston sponsors a 125K Plan (IRS), also known as a flex or cafeteria plan, which allows employees to use pre-tax dollars to fund medical, dental, vision, and dependent care expenses.

This is an election that employees designate annually and is a voluntary benefit. All regular full-time employees are eligible. Employees will save on Federal, State, and Medicare taxes paid on their pre-tax payroll deduction contributions and/or health care premiums.

The maximum annual contributions allowed for 2016 are:
  • Medical Flex: $2,550
  • Dependent Care Flex: $5,000 for filing Married or $2,500 if filing Single

Flex Plan Forms - Polestar Benefits, Inc.

How Does it Work?

The Cafeteria 125 Plan allows for medical, dental, prescription and some over-the-counter expenses to be "deductible" beginning with the first dollar. 

Generally, in order to meet the IRS requirements to deduct medical expenses, a person has to itemize, and they must have at least 7.5% of their adjusted gross in medical expenses.  Then, they get to deduct medical expenses OVER AND ABOVE that 7.5% figure.

Employees who elect to participate in the Cafeteria Plan can pay for these same expenses PRE-TAX and so they are getting a full deduction for the first dollar spent.  You can find additional information and list of eligible expenses on Polestar's website, www.polestarbenefits.com

IMPORTANT NOTES

UPON Termination -- employees must file claims for reimbursement within 30 days!!

If your spouse participates in an HSA (Health Savings Account) -- they may not participate in your FLEX plan.