drennan topic 3 quiz

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drennan topic 3 quiz
2014-09-22 02:42:06
rmi 3501

drennan topic 3 quiz
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  1. A benchmarking analysis involves
    • figuring out what benefits to offer a company using strategies such as
    • EE surveys
    • benefits committees
    • focus groups
  2. what has been a big part of the shift in ee benefit plan emphasis?
    favorable tax treatment used o be a strong driving force in plan design, but now the emphasis is ee needs
  3. examples of these new benefits based on ee needs include:
    • gyms
    • convenience benefits
    • dry cleaning
    • banking services
    • flexible work arrangements
  4. life cycle benefits
    • specific insurance products or benefits
    • tied to different stages in your life cycle
  5. voluntary benefit
    any benefit offered through an er on a group basis and ee pays the full cost
  6. AD&D and LTD are examples of ____________ benefits
  7. Section 125 plan
    A plan where ees have a choice between benefits normally considered taxable and benefits normally considered non taxable
  8. Examples of taxable benefits include:
    • Cash
    • group auto
    • GTLI with FA>50,000
  9. examples of non taxable benefits include:
    • health insurance or medical care
    • gTLI with FA<50,000
    • Group STD or Group LTD
  10. flexible plan
    allows choice between types and levels of benefits
  11. it is not a section 125 plan unless
    there is a choice between taxable and non taxable benefits
  12. What is a tea account
    transportation account
  13. Is an fsa part of section 125
    yes, unless it is used in conjunction with a cdhp
  14. flexible spending account
    • ee takes pre-tax salary reduction to fund accounts
    • used to reimburse ee's for eligible expenses defined by the irc
  15. what are the two types of FSA's?
    dependent care and medical care fsa's
  16. dependent care fsas cover
    child care expenses or elder care expenses
  17. medical care fsas cover
    any medical expense which a health plan does not fully cover or does not cover at all.
  18. use it or lose it rule
    • any unused funds remaining at the end of the plan year are forfeited by ees
    • ers have the the option to allow ees to submit claims for expenses incurred up to 2 1/2 months beyond the end of the year.
    • IRS also allows 500 to be rolled over (if you forfeit the 2 1/2 month extension)
  19. uniform coverage rule
    the thing drennan talked about where all 1200 was available immediately in the medical care fsa, but the dependent care fsa only had funds available that were put into the fsa
  20. Who is at risk under the uniform coverage rule?
    The er if the ee quits or dies, etc.
  21. what is a way ers limit their risk from the uniform coverage rule?
    they establish a maximum contribution amount per year in the fsas
  22. maximum contributions in the medical fsa?dependent care fsa?
    • medical 2500
    • dependent care 5000
  23. Irs viewpoint of fsas
    You voluntarily reduced your salary by 1200 in exchange for a tiny health insurance plan
  24. why is an fsa an example of a section 125 plan?
    because you are electing the pre-tax deduction. you could have just had the money in alary (which is taxed) therefore the choice between a taxed benefit and a non taxed benefit makes it a section 125 plan)
  25. premium only plan
    medical plan offered on a contributory basis
  26. pre salary reduction vs salary deduction
    reduction is taxed after the money is taken out. deduction is taken out after the money is taxed.