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Pre-Tax Contributions for Medical, Dental and Vision Plan Coverage
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Pre-Tax Contributions for Medical, Dental and Vision Plan Coverage
Q. Can I change or cancel my contribution election during the year?
A. Unless you have a change in status as defined on page 5,
you may not opt out of your pre-tax election during a plan year. However,
you have the opportunity to opt out once a year during the annual
enrollment period.
Your new election takes effect the following January 1.
You are enrolled to pay contributions for medical, dental
and vision plan coverage on a pre-tax basis, which gives you two primary
advantages:
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Under current tax law, you never pay federal income
taxes or Social Security taxes on the amount of these contributions.
In most states, you also save on your state income taxes.
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Each year you are enrolled to pay your contributions
for medical, dental and vision plan coverage on a pre-tax basis, and
your election remains in effect unless you cancel it during a
subsequent enrollment period or due to a change in status. The amount
of your pre-tax payroll deduction will increase or decrease to reflect
the amount of your contributions for medical, dental and vision plan
coverage at the beginning of each plan year and when your class of
coverage changes.
If you opt out of paying your contributions on a pre-tax
basis, you will have to renew this election to pay on an after-tax basis
each time you make a change on account of a change in status and each
annual enrollment.
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