Section 125

Section 125

Important Information

Polestar Benefits has been purchased by Infinisource Benefit Services; therefore, beginning January 1, 2019 all plan administration will be provided under the Infinisource Benefit Services name. 

Expenses Reimbursement:

  • Use the newly issued benefits card from Infinisource Benefit Services. Transactions will automatically be deducted from any remaining 2018 funds first (through 03/15/2019) and then will begin being deducted from the available 2019 balance after 2018 funds are depleted or on 03/16/2019, whichever comes first.  (Note: This does not apply to Dependent Care Account expenses.) 
  • Request for Reimbursement forms, for health care and dependent care expense claims, can be submitted using any of the following methods:
    Fax: (800) 379-5670
    Mobile App: Infinisource FSA iFlex Mobile
    Note: When accessing your online account for the first time, your username and password will be your first initial, last name, and last four digits of your social security number. No punctuation, no spaces. For example:
    Employee Name: Ty Titan  Social Security Number: 123-45-6789
    Username: ttitan6789  Password: ttitan6789

General Information

Plan Administrator: Infinisource Benefit Services

Section 125 of the Internal Revenue Code allows for establishment of individual non-taxable accounts to pay for expenses associated with certain types of health and dependent care expenses.

This benefit offers employees the opportunity to have money deducted from payroll on a pre-tax basis for reimbursement of eligible medical, dental, vision, and/or daycare expenses.

Participation in the Flexible Spending Account and/or Dependent Care Expense Account is optional and available for benefits-eligible classified, management, faculty and part-time faculty employees. Enrollment in Section 125 is offered on a calendar year basis for qualified health care and dependent care expenses incurred between January and December each plan year. Employees must re-enroll each plan year to participate in Section 125. Human Resources will facilitate an open enrollment process for Section 125 each year, typically mid-October to mid-November.

A new enrollment process must be completed each calendar an employee wishes to participate in the plan. Enrollment does not roll over from one year to the next.

The election choice(s) made for Section 125 cannot be changed during the year except in the following circumstances: change in family status (marriage, divorce, death, birth or adoption); and/or change in FTE or employment status of employee or spouse. If one of these exceptions occur, please contact Human Resources within 60 days.

It is an IRS "use it or lose it" program, so unused dollars are not refunded to the employee.

Resource Center for Participants

Medical Insurance Premium Account

Expenses used to pay the group health insurance premiums not paid by employer (e.g. portion of premium that is deducted from your pay). Exception: The IRS will charge taxes on the portion of the premium that is used to pay for a domestic partner and a domestic partner's dependent children's coverage.

Health Care Expense Account (Flexible Spending Account)

Expenses incurred by employee, spouse, or IRS dependent children that are not covered under a medical, dental, or vision plan. Examples: co-pay, co-insurance, deductible.

Upon election of the Section 125 FSA, eligible expenses can be paid using the Infinisource provided Benefits Card, or reimbursed by submitting a claim reimbursement request through the Infinisource Portal or the iFlex by Infinisource smart phone app. Reimbursement will be made by check or direct deposit.

Dependent Care Expense Account

Expenses relating to dependent care that enable the employee to work. Examples: daycare, summer camps, after school care. Claim reimbursement requests should be made through the Infinisource Portal or the iFlex by Infinisource smart phone app. Reimbursement will be made by check or direct deposit.

Annual Minimum and Maximum Contribution Amounts

Healthcare Flexible Spending – $240 minimum and $2700 maximum.

Dependent Care Account (daycare expenses) – no minimum and $5000 maximum if single or married filing jointly; $2500 maximum if married and filing separately.

College Contribution

The College contribution toward Section 125 does not apply toward the IRS maximum. Employees can contribute up to $2700 and receive the College contribution in addition.

2019 contribution levels are based on health insurance enrollment tiers as follows:

  • Classified - Employee Only: $670; Employee + One: $1340; Full Family: $1715
  • Management - Employee Only: $450; Employee + One: $700; Full Family: $900
  • Faculty/Part-time Faculty - Employee Only $450; Employee + Spouse/Children: $700; Full Family: $900

Grace Period

If an employee has unused funds from the previous calendar year, expenses incurred through March 15 of the following calendar year will automatically be paid from the oldest balance first. For example: If you have unused funds in 2019, expenses incurred through March 15, 2020 will automatically be paid from the 2019 balance first.

All reimbursement claims must be received by March 31 for any expenses incurred during the previous calendar year. Any remaining balance(s) from the previous calendar year will not be refunded to the employee after March 31. For example: All reimbursement claims must be received by March 31, 2020, for expenses incurred in 2019.