34 Tex. Admin. Code § 85.5 - Benefits
(a) Benefits available for selection by
participants. A participant may elect, in accordance with the procedures set
forth in this section, one or both of the following benefits, subject to all
the requirements and conditions contained in these rules:
(1) health care reimbursement plan;
(2) dependent care reimbursement
plan.
(b) Health care
reimbursement plan.
(1) General purpose
health care reimbursement account. Pursuant to the health care reimbursement
plan, a participant may elect to receive reimbursements of certain health care
expenses which are excludable from the participant's taxable income. The
general purpose health care reimbursement account is intended to be qualified
under the Code, §105, is an optional benefit under the flexible benefits
plan, and constitutes a separate written employee benefit plan as contemplated
by the Code, §105, and Treasury Regulation 1.105-11.
(2) Maximum benefit available. Subject to the
limitations set forth in these rules, hereafter referred to as the plan, to
avoid discrimination, the maximum amount of flexible benefit dollars that an
employee may receive in any plan year for health care expenses under the health
care reimbursement plan is the amount permitted under the Code, §105. Even
if permitted under the Code, in no event shall the amount available exceed
$5,000 in a plan year. An employee may prepay the health care election amounts
for the remainder of the plan year in anticipation of termination, retirement,
or a period of leave without pay.
(3) Limited purpose health care reimbursement
account. An employee who elects to participate in a consumer directed health
plan with a health savings account as permitted by Subchapter J, Chapter 1551,
Insurance Code, may elect to participate in a limited purpose health care
reimbursement account. This limited purpose health care reimbursement account
may only be used to reimburse eligible dental and vision care expenses incurred
during the benefit plan year or permitted carryover period. The limited purpose
health care reimbursement account is intended to be qualified under the Code,
§105, is an optional benefit under the flexible benefits plan, and
constitutes a separate written employee benefit plan as contemplated by the
Code, §105, and Treasury Regulation 1.105-11.
(c) Dependent care reimbursement plan.
(1) Pursuant to the dependent care
reimbursement plan, a participant may elect to have payments made or receive
reimbursement for dependent care expenses. The dependent care reimbursement
plan is intended to be qualified under the Code, §129, is an optional
benefit under the flexible benefits plan, and constitutes a separate written
employee benefit plan as contemplated by the Code, §129.
(2) Maximum benefit available.
(A) Subject to any limitations imposed by
these rules, hereafter referred to as the plan, to avoid discrimination, the
maximum amount that an employee may receive in any plan year in the form of
payment of or reimbursement for dependent care expenses under the dependent
care reimbursement plan is the lesser of:
(i)
the employee's earned income for the plan year (after all reductions in
compensation including the reduction related to dependent care
expenses);
(ii) the earned income
of the employee's spouse for the plan year; or
(iii) the amount permitted under the Code,
§129. Even if permitted under the Code, in no event shall the amount
available exceed $5,000 in a plan year.
(B) In the case of a participant's spouse who
is a full-time student at an educational institution or who is physically or
mentally incapable of caring for himself, such spouse shall be deemed to have
earned income of not less than $200 per month if the participant has one
dependent and $400 per month if the participant has two or more dependents in
accordance with the Code, §21.
Notes
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