Contents
Cal Poly Pomona

Open Enrollment 2010

Open Enrollment 2010

FLEXIBLE SPENDING ACCOUNTS (HCRA & DCRA)

HEALTH CARE REIMBURSEMENT ACCOUNT (HCRA):

The Health Care Reimbursement Account (HCRA) is a voluntary benefit that offers employees the ability to pay for eligible out-of-pocket expenses with pre-tax dollars, in accordance with Internal Revenue Code Section 125.

Contributions to this plan are deducted from the employee's pay before Federal, State and Social Security (FICA) taxes are withheld. Taxable income is reduced and, consequently, taxable income reflected on participant's W-2 statement is reduced. Medical, dental, and vision expenses eligible to be reimbursed by the HCRA Plan include uninsured and medically necessary expenses incurred by you and your dependents.

For definition of dependents, please refer to IRS Publication 502. You can download the information regarding IRS Publication 502 using the ASI (Plan Administrator for CSU employees) web address http://www.asiflex.com .

Expenses must be for the diagnosis, cure, treatment or prevention of disease, and for treatments affecting any part or function of the body. Expenses incurred solely for cosmetic reasons or expenses that are merely beneficial to a person's general health are not eligible for reimbursement.

Each month, the amount you have pre-selected is deducted from your salary before income and Social Security taxes are withheld. These funds are held in your personal HCRA until you incur eligible expenses and file a claim for reimbursement.

If you are currently enrolled in HCRA and wish to participate again in 2010, it is mandatory that you re-enroll during open enrollment period. IRS rules require re-enrollment each tax year you participate in HCRA.

It is strongly recommended that, before enrolling in the program, you carefully read the information contained in the HCRA brochure. HCRA brochures are available on our website at http://www.csupomona.edu/~hr/benefits/hcra.shtml . In addition, you may want to discuss the program with your personal tax advisor who can advise you regarding the advantages/disadvantages of your participation in a HCRA. Benefits eligibility is not required to participate in HCRA.

DEPENDENT CARE REIMBURSEMENT ACCOUNT (DCRA) PLAN:

The Dependent Care Reimbursement Account (DCRA) provides for the payment of certain dependent care expenses (e.g., day-care center expenses for dependent children under age 13) from your pre-tax income, through a special tax-free account set up for this purpose.

Each month, the amount you have pre-selected is deducted from your salary before income and Social Security taxes are withheld. These funds are held in your personal DCRA until you incur eligible expenses and file a claim for reimbursement. Even when paid out as reimbursements, the funds remain tax-free. Tax-free DCRA's are governed by a number of rules; most of these rules are set by the Internal Revenue Service.

If you are currently enrolled in DCRA and wish to participate again in 2010, it is mandatory that you re-enroll during open enrollment period. IRS rules require re-enrollment each tax year you participate in DCRA.

It is strongly recommended that, before enrolling in the program, you carefully read the information contained in the DCRA brochure. DCRA brochures are available on our website at http://www.csupomona.edu/~hr/benefits/dcra.shtml . In addition, you may want to discuss the program with your personal tax advisor who can advise you regarding the advantages/ disadvantages of your participation in a DCRA. Benefits eligibility is not required to participate in DCRA.