Flexible Spending Account

Important Restrictions:

• You must elect to participate prior to the beginning of each plan year. There is no allowance for late enrollment.
• The amount that you designate for medical reimbursement may not subsequently be used for reimbursement of dependent care expenses and vise versa.
• If you do not file sufficient claims for reimbursement, you will lose the unused amounts. This is often referred to as the "use it or lose it" rule.
• During an unpaid leave of absence, contributions to the unreimbursed medical account must be made on an after tax basis - just like any insurance premium. When the employee returns to work, the pre-tax contribution will resume.

Election Changes:

• A Section 125 plan provides that participant elections are irrevocable for the period of coverage (the plan year), except for a change in status which affects your need for an elected benefit. Examples of a change in status include your marriage, divorce or legal separation, death of your spouse or child, birth or adoption of a child, or change in employment status of you or your spouse. Contact First Financial for special rules effecting Waco ISD's plan.

Options at Employment Termination:

• Upon termination of employment, an employee may elect to discontinue or to continue the medical reimbursement account payment on an after tax basis (COBRA). If you elect to continue the contribution on an after-tax basis, the coverage under the medical expense account will continue until the premium ceases and expenses incurred during the period of coverage will be reimbursed.
• If you do not elect to continue the payments on an after-tax basis, only expenses incurred during the period of coverage will be reimbursed. Coverage under the reimbursement account ceases when the payment cease.

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