Retiree Health Care Reimbursement Plan
Chances are, health expenses will pop up after you retire. Waters employees age 50 and up are eligible to contribute to the Waters Health Care Reimbursement Plan for Retirees, which lets you start saving now to cover those health costs down the road – and earn interest while you do it.
Advantages
Your account earns at least 5% interest every year. And Waters will match 100% of your contributions to this account, up to $1,200 per year. Though to keep the money matched by Waters, you must meet the requirements listed in the aptly named requirements section. Otherwise you forfeit the company match (but you never forfeit your contributions or the interest on those contributions).When it comes time to access this money by claiming eligible health expenses, you won’t pay federal taxes on the money you or Waters put in, or on the interest you earned, as long as you spend it on qualified medical expenses (which include post-tax premiums).
Requirements
To enroll, you just need to be a Waters employee age 50 or over. You can enroll within your 30-day new hire enrollment window, or any future annual open enrollment window. If you turn 50 during the year, you’ll have 30 days following your birthday to enroll in this plan.The annual interest is calculated based on your account balance at the beginning of the year. And then the interest is ADDED to your account at the END of the year.To keep the funds contributed by Waters, you must meet the following criteria when you leave Waters.Specifically, that means you are either:
At least 60 years old and have 10 years of Waters service
65 years old and have at least 5 years of service
Depositing Funds
You can elect to have post-tax deductions from your paychecks from $100 up to $2,400 per year, on a post-tax basis. And Waters will match dollar for dollar up to $1,200 per year. Money you contribute will be added to the account directly from payroll, after taxes have been taken out. (But don’t worry, you won’t be taxed again when the money you contributed is withdrawn. You’ll only have to pay taxes on your income once.)
Contribution Limits
You may contribute from $120 to $2,400 per year to the account. (Remember, it comes out of your check post-tax.)
Eligible Expenses
Under this plan, you can be reimbursed for health care premiums you pay and medical services that you, your spouse or your dependents (as defined for federal income tax purposes) incur after you retire. Generally, health expenses must be medically necessary and/or prescribed by a licensed physician to qualify. The expenses must also be considered tax deductible on your federal income tax return. You may refer to IRS Publication 502, Medical and Dental Expenses, for more information about what may be considered an eligible health expense. This publication is available without charge from the IRS by calling 1-800-829-3676. Or, you can download copies of the publication from the IRS web site at www.irs.gov.
All claims must be filed within two years of the date you received service. Reimbursements for eligible expenses from the Waters Health Care Reimbursement Plan for Retirees are tax free.
Here is a partial list of health care expenses for which you can seek reimbursement through the Waters Health Care Reimbursement Plan for Retirees:
Medicare Parts A and B deductibles and coinsurance
Medicare Part B premiums which may be deducted from your monthly Social Security checks
Premiums to purchase a Medicare supplement plan
Premiums for Waters group medical and dental plans until Medicare eligibility (if you retire after reaching early retirement eligibility and remain in one of the Waters group plans)
Premiums for COBRA coverage
Deductibles, copayments and coinsurance you pay toward your medical or dental expenses
Qualified long-term care expenses and long-term care insurance contract premiums
Prescriptions
Certain over-the counter medications and
Uninsured medical, dental, vision and hearing care expenses.
If you have any questions about an expense that you have incurred or may incur, please contact the account administrator.
Learn more at WatersBenefitsNow.com.