I.R.S. Section 125 - Cafeteria Plan

For access to Employee Applications and Forms, please visit Montgomery County Connect Site

Click here for Flexible Spending Account login instructions.

Frequently Asked Questions

(A) Premium reduction for medical, dental and vision premiums deducted from your paycheck on a pre‐tax basis, thereby reducing your taxable income.  Any deductions for medical, dental or vision benefits will be pre‐taxed from your paycheck.

(B) Flex Spending Account: A pre-tax deduction account used to pay or reimburse your portion of medical, dental, vision expenses, such as your deductible and/or co-pays and other eligible expenses as listed by the I.R.S. with a $2,650.00 cap per year. Flex Card will be loaded at eligibility with the amount elected for the plan year. (Documentation may be required.) 

(C) Dependent Care Reimbursement Account: You may contribute up to $5,000.00 annually for a joint tax return or $2,500.00 for an individual tax return, deducted from your paycheck on a pre‐tax basis for reimbursement of eligible dependent care expenses. You will be required to submit a claim for eligible dependent care expenses as stipulated by the I.R.S. Section 125 rules. (Documentation required) Consult with your personal tax advisor regarding effects on tax filing.

When you first become eligible for benefits, effective the 1st day of the month, following 58 days of active employment, or during the annual Benefit Enrollments.  All Elections other than your first election will become effective January 1 of each calendar year.

Yes, however as a Cafeteria Plan participant, any dental or vision benefit you elected will be deducted from your paycheck on a pre‐tax basis.

You can use your Flex Debit Card to pay for eligible expenses at the time of service or you can submit a Medical Reimbursement Claim Form with the required documentation to the medical plan claims administrator for reimbursement. Claims may be substantiated with an eligible expense receipt by uploading to the Boon Chapman Flex App or the Boon Chapman Flex webpage.

Fill out a Dependent Care Account Reimbursement Claim Form and submit required documentation to the medical plan claims administrator.

In general, the Internal Revenue Code(129(e) and 21(b) (2) requires that an expense satisfy each of the following requirements to be eligible for reimbursement:

1. Expenses will be reimbursed only after the care has been provided, and not when you, the participant, are formally billed, charged for or pay for the dependent care.

2. The expenses must be incurred by your during a period when you have a dependent or spouse who is a qualifying individual which is either:
(a) A dependent of the Participant under age 13 for which the Participant is entitled to an income tax deduction; or
(b) A dependent or spouse, regardless of age, who is incapable for caring for him/herself who spends at least 8 hours a day in participant’s household.

3. The expense must be for the care for the ‘qualifying individual’, which you incur to enable you (and if applicable, your spouse) to be gainfully employed.

4. If the expenses are for services provided outside your household, at a Dependent Day Care Center that provides care for at least 6 non‐residents, it must:
(a) Comply with all state and local laws;
(b) Charge a fee for providing the services.
Note: Special rules apply to divorced parents or married individuals living apart (IRS 21(e))

Yes, by  March 31, of the following year for all eligible expenses incurred during the previous calendar year.

You can rollover a balance of up to $500 to the next plan year. Any balance over $500 will be forfeited at the end of the calendar year. "Use it or lose it."

Yes, effective December 31, of the plan year you enrolled.
Note: If certain qualifying events occur during the year, per I.R.S regulations, you may elect to opt out of this plan within 31 days of event. Contact Risk Management for the qualifying events. 

Boon Chapman Claims Administrators

Go to the Boon Chapman Claims Administrators website

Section 125

Copyright © Montgomery County, Texas. All Rights Reserved.