With our Flexible Benefits (Flex) Plans, Newport Group provides consulting and administrative services for the benefit of employers and their employees. We administer the following types of plans:
Traditional Flexible Spending Account (FSA)
The traditional flexible spending account allows pre-tax deductions for medical, prescriptions, dental and vision expenses. Although these were developed as “use-it-or-lose-it” plans, over the past few years the IRS has provided several options an employer may choose which can help reduce forfeiture amounts.
Limited Purpose Flexible Spending Account (Limited FSA)
The limited purpose flexible spending account is available to participants who contribute to a health savings account. The limited flex account generally allows pre-tax deductions for certain dental and vision expenses. These plans may help participants when used in combination with a high-deductible health plan.
Dependent Care Reimbursement Account (DCA)
The dependent care account allows for pre-tax deductions of expenses for the care of dependent children under 13 (or elderly parents for whom the participant is the guardian) for working parents. The IRS has set an annual maximum of $5,000 per household ($2,500 if married filing separately). Reimbursements cannot exceed the amount contributed to your account.
Commuter Account (Parking and Transit Reimbursement)
A commuter account allows pre-tax deductions for qualified mass transit and parking expenses associated with the employee’s commute to and from work.
Health Reimbursement Arrangement (HRA)
The health reimbursement arrangement is 100% employer-funded and must be coupled with a group medical plan. As these plans are funded entirely by the employer, there is a lot of flexibility allowed in the setup of these plans with respect to plan design, funding and what is considered an eligible expense.
Health Savings Account (HSA)
The health savings account is a tax-free, employee-owned account tied to a high deductible health plan. They are 100% deductible for the employee, roll over from year to year, and earn interest. The funds in an HSA can be used to pay medical expenses, rolled over into investment options, or used as an income supplement at retirement.
COBRA Administration (Consolidated Omnibus Budget Reconciliation Act)
COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage), at their own expense, in certain instances where coverage under the plan would otherwise end. Newport Flex acts as an independent third party administrator and will perform administrative services related to the continuation coverage requirements of COBRA.
Newport Group, Inc., its affiliates, registered representatives, and investment advisory representatives (collectively “Newport Group”) do not provide tax, accounting or legal advice.