TexFlex
TexFlex:
A benefits plan permitted under IRS Section 125 that allows employees to use pre-tax dollars to establish reimbursement accounts pay for
unreimbursed health and dental care, and dependent (day) care expenses. Pre-tax dollars (a minimum of $15.00) used in TexFlex reduce the employee's gross income, thereby lowering his/her federal income taxes.
TexFlex programs:
Health Care Reimbursement Account (HCRA):
Pre-tax dollars (up to $416.00 per month) may be used to pay for unreimbursed health and dental care expenses.
Note: Under this program, employees must pay HCRA contributions during a leave of absence or after termination - for the balance of the plan year.
Dependent (Day) Care Account (DCRA):
Pre-tax dollars (up to $416.00 per month) may be used to pay for dependent (child or adult) day care. Expenses are eligible only if necessary for the employee to continue working. If married, the employee's spouse must be working, a full-time student, or disabled.
Important Note: Once employees make elections under the Cafeteria Plan, they may not be changed, including levels of insurance coverage, for the remainder of the plan year (September 1 through August 31), unless there is a "qualifying life event". In addition, be sure to budget and plan wisely, because money set aside in this program and not used to pay for expenses during the year cannot be refunded to employees!
Information can be found on the ERS web site or link directly to the TexFlex web site.