- The New Health Care Law and its Effects
- Why You Can't Be without It
- Employer Plans
- Coordinating Employee Benefits with Your Spouse
- Traditional Group (Indemnity) Plans
- Preferred Provider Organizations (PPOs) / Point-of-Service (POS) Plans
- Health Maintenance Organizations (HMOs)
- Consumer-Driven Health Care (CDHC) Plans
- Paying for Medical Coverage
- Making the Right Choice
- Terminating Employment and COBRA Coverage
- Dental Plans
- Vision and Hearing Plans
- Health Care Flexible Spending Accounts
- Health Savings Accounts
Many employer-sponsored medical plans are offered as part of an employer's flexible benefits program. This type of plan offers you a choice of benefits and coverage options. Qualified benefits include group-term life insurance, accident and health insurance, group legal services, dependant care assistance, and cash-or-deferred arrangements [commonly known as 401(k) plans].
If your medical plan is part of a flexible benefits program, your medical premiums are deducted on a pre-tax basis. This means your premiums will be deducted before taxes are taken out of your paycheck. The end result is that you'll take home more money.
Let's look at the following example:
|
Pre-tax |
After-tax |
|
|
Bi-weekly paycheck |
$1,000 |
$1,000 |
|
Taxes (25% bracket) |
$0 |
$250 |
|
Medical Premium |
$50 |
$50 |
|
Taxes (25% bracket) |
$238 |
$0 |
|
Net Take-Home Pay |
$712 |
$700 |
As you can see, there is $12 more per paycheck for the person who pays with pre-tax dollars.
Health care reimbursement accounts can also help you reduce your costs for non-covered medical expenses that you're likely to incur from year to year.
- ARE NOT A DEPOSIT
- ARE NOT FDIC-INSURED
- ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
- ARE NOT GUARANTEED BY THE BANK
- MAY GO DOWN IN VALUE
Important information about procedures for opening a new account
To help the government fight the funding of Terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
What this means to you: When you open an account, we will ask you for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Investment products are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Insurance products offered through Osaic Institutions, Inc.
