Iowa Bankers Association Iowa Bankers Mortgage Corporation
Iowa Bankers Insurance
and Services
8800 NW 62nd Avenue
PO Box 6210
Johnston, IA 50131
Toll-Free: 800-532-1423
Fax: 515-286-4214

IBBP Customer Service:
    800-258-1415
125 Claim Fax:
    515-286-4244
IBBP Billing Fax:
    515-286-4369

Agent Customer Service:
    800-775-8858

Section 125 Flexible Spending Account (FSA)

Section 125 Flexible Spending Account (FSA)

A Section 125 Cafeteria Plan is a benefit your employer may provide which enables you to contribute a portion of your gross income to a designated flexible savings account (FSA). The amount you contribute to an FSA is deducted from your pay before federal, state, and Social Security taxes are calculated, so you keep more of your money. You can then use the funds in the account to pay for certain health care and dependent care expenses. On average, you save about $.25 for every dollar you contribute to your FSA.

Medical Flexible Spending Account (MedFSA)

A medical flexible spending account (MedFSA) allows you to pay for eligible medical expenses with pre-tax dollars. You estimate how much you’ll spend on qualified medical expenses in the coming year and decide on a contribution amount. When you have an eligible expense, you submit a claim form with the required documentation, and once the claim is approved and processed, you are reimbursed with tax-free dollars from your account. If you are insured under the IBBP health and/or dental plan,  those claims are processed and paid automatically through the 125 plan.
 
The amount you choose to contribute for the year is taken out of your paycheck in equal installments each pay period. However, the total amount you elect for your medical reimbursement account is available any time during the year. Unless you have a qualified status change event, you cannot change your contribution amount during the year, and if you don’t use all the money you’ve contributed by the end of the year, you lose it. However, some employers offer a grace period of up to two-and-a-half months after the end of the plan year to use your money or a carry over option that allows you to carry over up to $500 into the next plan year. Contact your employer to find out if your 125 plan includes the grace period or $500 carryover option.

Dependent Care Assistance Program (DCAP)

A dependent care assistance program (DCAP) account allows you to pay qualified daycare expenses with pre-tax dollars for children under age 13 who reside in your household and adult dependents who are mentally or physically incapable of caring for themselves who spend at least eight hours a day in your home. You set aside part of each paycheck pre-tax to pay for eligible dependent care expenses so you can work. Once the claim is approved and processed, you are reimbursed with tax-free dollars from your account.
 
You can contribute up to $5,000 annually (or $2,500 if married and filing separately) to your DCAP account. The amount you choose to contribute for the year is taken out of your paycheck in equal installments each pay period. You can be reimbursed for your expenses up to the amount you’ve contributed so far in the plan year. Unless you have a qualified status change event, you cannot change your contribution amount during the year. If you don’t use all the money you’ve contributed by the end of the year, you lose it.

Premium Only Plan

The premium only portion of a Section 125 cafeteria plan allows the portion you pay for group insurance to be taken out of your paycheck before state, federal, and Social Security taxes are withheld. Paying these premiums with pre-tax dollars reduces your taxable income — which means more take-home pay for you.

Insurance premiums that can be paid for with pre-tax dollars include premiums for group health, dental, vision, and some other supplemental insurance plans, as well as health saving account (HSA) contributions.

Explanation of Benefits (EOBs), Forms, Resources, and Questions

If your employer offers the Section 125 Cafeteria Plan through IBIS, you can access your IBIS 125 Plan explanation of benefits (EOBs), forms, and other resources by logging into the IBIS Group Benefits Portal. 

If you have questions about the Section 125 Cafeteria Plan offered by your employer, please contact your employer’s plan administrator or call IBIS Customer Service at (800) 258-1415.

 

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Mid America Banking Insurance Services, Inc., a subsidiary of IBIS, provides insurance programs to banks outside of Iowa. 

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The Iowa Bankers Association (IBA) is dedicated to serving Iowa banks and their employees.

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Iowa Bankers Mortgage Corp. (IBMC) offers the products & experience Iowa banks need in the secondary mortgage market.

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