WRAP Documents
When there are more than 100 participants in the benefit plans sponsored by the employer, a 5500 is required. The 5500 is a rather expensive an confusing document to produce and only qualified and experienced professionals should prepare them.
If there are 2 or more plans that require 5500's a formal Wrap Document could be an alternative as it allows the employer to combine all the plan 5500 reporting on to one 5500 form. If there is concern about a Wrap Document for reporting, please download and complete the form in the link above and we will contact you to discuss. The fee for the MoneyWise Wrap Document is $750 (maximum). It is only one page and will take less than 5 minutes to complete.
Flex Plan Enrollment Kit
Your company is please to offer this money saving employee benefit plan. It’s called a Flexible Benefits Plan. There are basically three parts to a “FLEX” plan:
Option One The PREMIUM CONVERSION ACCOUNT allows employees to pay their share of premiums for health insurance or certain other insurances with pre-tax dollars.
Option Two The MEDICAL EXPENSE REIMBURSEMENT ACCOUNT allows employees to pay for medical expenses (not covered by insurance) with pre-tax dollars. Following are typical “out-of –pocket” expenses that would qualify:
Option Three The DEPENDENT CARE EXPENSE REIMBURSEMENT ACCOUNT allows employees to pay for most child/dependent care expenses with pre-tax dollars. In most cases, there is substantially more tax savings with this plan than there is with the “tax credit” that you get when doing your tax return.
To Enroll you must first: Determine your “Annual Election Amount” (calendar year) for medical and dependent care expenses. Click here for worksheets that will help you to estimate your out of pocket expenses.
Contributions to the plan are made through payroll deduction. The deduction amount is determined by dividing the annual election amount by the number of pay-periods in the plan year. Example: Estimated medical expenses = $480.00 divided by 24 pay-periods equals a $20.00 deduction each payroll into your account.
This deduction is taken out of each of your paychecks before taxes are taken out. The money is placed in your own reimbursement account. As soon as you have an “out of pocket” expense, you will submit a claim directly to MWS-Flex, and receive a reimbursement from your medical or dependent care account in your next paycheck.
Guideline # 1
– The entire annual election amount for your Medical Account will be available to you from the very start of the plan. Using the example above, you can be reimbursed for a $250.00 pair of eyeglasses after only one payroll deduction of $20.00.
To receive reimbursement from your dependent care account you must have the money in the account.
Guideline # 2
– “The Use It or Lose It Rule” – If you do not use up all of the money in your account by the end of the plan year, your balance will be forfeited and cannot be returned to you (IRS regulations).
Please estimate your expenses conservatively and be careful to contribute amounts for expenses that you reasonably know you are going to have.
Expenses must be for services rendered during the plan year for which the election is being made.
Guideline # 3
– Enrollment – You may only enroll in the plan prior to the beginning of the plan year. You may not change you election after the plan year begins unless you experience a change in family status (marriage, divorce, birth, death, and significant change of employment).
For details of these qualifying events please refer to your copy of the Summary Plan Description.
Guideline # 4
– Termination –
If you leave employment you will have the following options:
1) Terminate your participation
– by making monthly payments to the plan IF the balance exceeds the amount required to complete the plan year.
This summary is intended to highlight the most important features of the plan. In no way is it intended to replace the Summary Plan Description (SPD), which will be provided to each location manager. Please read the SPD carefully.
For your convenience, we have created a worksheet that can be downloaded by clicking this link:
When there are more than 100 participants in the benefit plans sponsored by the employer, a 5500 is required. The 5500 is a rather expensive an confusing document to produce and only qualified and experienced professionals should prepare them.
If there are 2 or more plans that require 5500's a formal Wrap Document could be an alternative as it allows the employer to combine all the plan 5500 reporting on to one 5500 form. If there is concern about a Wrap Document for reporting, please download and complete the form in the link above and we will contact you to discuss. The fee for the MoneyWise Wrap Document is $750 (maximum). It is only one page and will take less than 5 minutes to complete.
Flex Plan Enrollment Kit
Your company is please to offer this money saving employee benefit plan. It’s called a Flexible Benefits Plan. There are basically three parts to a “FLEX” plan:
Option One The PREMIUM CONVERSION ACCOUNT allows employees to pay their share of premiums for health insurance or certain other insurances with pre-tax dollars.
Option Two The MEDICAL EXPENSE REIMBURSEMENT ACCOUNT allows employees to pay for medical expenses (not covered by insurance) with pre-tax dollars. Following are typical “out-of –pocket” expenses that would qualify:
- Deductibles
- Co-insurance amounts
- Vision Care
- Dental Care
Option Three The DEPENDENT CARE EXPENSE REIMBURSEMENT ACCOUNT allows employees to pay for most child/dependent care expenses with pre-tax dollars. In most cases, there is substantially more tax savings with this plan than there is with the “tax credit” that you get when doing your tax return.
To Enroll you must first: Determine your “Annual Election Amount” (calendar year) for medical and dependent care expenses. Click here for worksheets that will help you to estimate your out of pocket expenses.
Contributions to the plan are made through payroll deduction. The deduction amount is determined by dividing the annual election amount by the number of pay-periods in the plan year. Example: Estimated medical expenses = $480.00 divided by 24 pay-periods equals a $20.00 deduction each payroll into your account.
This deduction is taken out of each of your paychecks before taxes are taken out. The money is placed in your own reimbursement account. As soon as you have an “out of pocket” expense, you will submit a claim directly to MWS-Flex, and receive a reimbursement from your medical or dependent care account in your next paycheck.
Guideline # 1
– The entire annual election amount for your Medical Account will be available to you from the very start of the plan. Using the example above, you can be reimbursed for a $250.00 pair of eyeglasses after only one payroll deduction of $20.00.
To receive reimbursement from your dependent care account you must have the money in the account.
Guideline # 2
– “The Use It or Lose It Rule” – If you do not use up all of the money in your account by the end of the plan year, your balance will be forfeited and cannot be returned to you (IRS regulations).
Please estimate your expenses conservatively and be careful to contribute amounts for expenses that you reasonably know you are going to have.
Expenses must be for services rendered during the plan year for which the election is being made.
Guideline # 3
– Enrollment – You may only enroll in the plan prior to the beginning of the plan year. You may not change you election after the plan year begins unless you experience a change in family status (marriage, divorce, birth, death, and significant change of employment).
For details of these qualifying events please refer to your copy of the Summary Plan Description.
Guideline # 4
– Termination –
If you leave employment you will have the following options:
1) Terminate your participation
- Example # 1 – Lucy has already exhausted the funds in her account. She has deposited $250 and has had $250 paid out for claims.
- Example # 2 – Larry has deposited $250 but has only been reimbursed $200. He needs to file $50 worth of new claims which have been incurred (invoice dated) prior to the termination date. He has 60 days from his termination date to file the claims.
– by making monthly payments to the plan IF the balance exceeds the amount required to complete the plan year.
This summary is intended to highlight the most important features of the plan. In no way is it intended to replace the Summary Plan Description (SPD), which will be provided to each location manager. Please read the SPD carefully.
For your convenience, we have created a worksheet that can be downloaded by clicking this link: