- June 2010 > Tax Break
You may already realize that the monthly premium that you pay for medical, dental, vision, and a portion of life insurance are automatically deducted from your paycheck before taxes are assessed. That means you receive a tax-savings benefit every month just by electing these insurance coverages.
Did you know that more tax-saving opportunities exist too?
The UT FLEX program allows you to pay for eligible medical and dependent day care expenses tax-free, which puts more money in your pocket. By estimating your eligible medical reimbursement expenses for the next plan year, during Annual Enrollment you can elect to deduct that amount from your paycheck by enrolling in the UT FLEX Medical Reimbursement Account. You can do the same with your dependent day care expenses and enroll in the UT FLEX Dependent Day Care Account during Annual Enrollment.
Tax-deferred options exist within your benefits package too. You can save for your future and on your current taxes all at the same time. By enrolling in either the UTSaver Deferred Compensation Plan or the UTSaver Tax-Sheltered Annuity, the amount that you contribute will be deducted from your paycheck prior to taxes being deducted. Once again, that puts money in your pocket now.
You will not pay taxes on the contribution or the earned interest until you receive a retirement distribution from the account. If you wish to pay taxes on your contributions now and then receive your retirement distribution tax-free, that option exists too through the UTSaver Roth Tax-Sheltered Annuity.
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UT System Employee Benefits Web site: www.utsystem.edu/benefits/
UT System Retirement Programs Web site: www.utretirement.utsystem.edu
Your Local Benefits Office: www.utsystem.edu/benefits/contacts/#1