IRA’s can be set up at almost any bank, or at most brokerage houses (e.g.: Schwab, Fidelity, Vanguard, E-Trade, UBS, etc.)
Most plans will allow you to leave your vested balance in the plan if your vested account balance is greater than $5,000. Please check your Summary Plan Description for additional information.
Most banks take 1-2 business days to post the deposit into your account.
Yes – taxes still apply when you choose to take cash distributions even if you are over the age of 59½. You will not be subject to the 10% federal early withdrawal penalty and 2.5% California state penalty tax that normally applies to cash distributions.
You will need to review your Flexible Spending Handbook, contact your Human Resources Department or contact us here at Pension Dynamics to determine if your plan includes Carryover.
Any available Carryover funds will be available on the first day of the new plan year. The amount that is carried over is determined at the end of the run-out period of the previous plan year and will not appear in the current account balance until that time period has ended.
Under the regulations, your Dependent Daycare expenses need to be “work related.” This means that the expenses must be incurred while you (and your spouse if married) are working or actively looking for work. Volunteer work, either unpaid or nominally paid, do not qualify as “work.” However, if your spouse is a full-time student, your daycare expenses may be eligible.
The deadline for submitting claims is 90 days after the close of the plan year. For calendar year plans, the deadline would be March 31st.
You have 90 days from the date of termination to submit any claims for expenses incurred while you were an active employee. Any funds remaining in your account after that 90-day period has ended will be forfeited back to your employer.
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires certain employers with group health plans to give employees the opportunity to continue their group health care coverage under the employer's plan if their coverage otherwise would cease due to termination, lay off, or other changes in employment status.
Yes a participant can contribute to both their employer’s retirement plan and a personal IRA. However, depending on your income, all or a portion of your IRA contribution may still be taxable in that year.
Roth contributions are salary reduction contributions made to the plan that are made on an after tax basis (the income and gains that are earned on Roth contributions are not taxed).
There will be a mandatory 20% Federal withholding on any cash distribution over $200.00. State withholding is optional. You may choose to have State withholding taken at the time of the distribution or you may choose to take care of State taxes at the end of the year when you file your tax return. You may also elect additional Federal withholding, if desired, at the time of distribution. In addition, if you are under the age of 59-1/2 you may be subject to a 10% federal penalty tax on the distribution amount and a possible state penalty tax based on your state residency. (i.e.; California may have an additional 2.5% penalty tax).
Once you log into your account, click Reimbursement Accounts. If you would like to see information for a past plan year, you will need to change the plan year ending in the drop down box at the top of the page. If you have multiple benefits available, you will need to select the appropriate benefit.
By completing the Direct Deposit Authorization Form that can be downloaded from https://www.pensiondynamics.com/resources/forms and following the instructions on the form.
Yes, just open a claim using the mobile app, fill in some details onscreen, take a photo of your receipt with your smartphone camera, and upload.
You can enroll, change or terminate your participation on a monthly basis if you would like. However, you must make the change prior to the beginning of the month that you want the change to become effective. For example, if you would like to enroll effective March 1st, the enrollment would need to be completed prior to March 1. All changes are effective the first of the month following.
Claims are reimbursed by check mailed to your home or direct deposit if your employer offers that option. You will need to review your Flexible Spending Handbook, contact your Human Resources Department or contact us here at Pension Dynamics to determine if your plan offers direct deposit.
As each plan can choose whether to charge maintenance fees, you should contact your previous employer’s Plan Representative or you can call Pension Dynamics to obtain that information. Additionally, if you have a copy of the Summary Plan Description (SPD) and Administrative Policies from your previous plan, you can review it to find out if fees are paid by plan participants.
The Limited (HSA-Compatible) Reimbursement Account enables employees to pay for expenses that are not covered by insurance with pre-tax dollars and still maximize Health Savings Account (HAS) tax savings at the same time! This account allows employees to be reimbursed for out-of-pocket dental and vision expenses as well as post-deductible medical expenses.
You will need to review your Flexible Spending Handbook, contact your Human Resources Department or contact us here at Pension Dynamics to determine if your plan offers a Debit Card. You can also log into your account online and see if there is a debit card tab available online. If it is, click there and follow the instructions to elect a debit card.
Yes! Simply search for “myRSC” on the App Store™ for Apple devices or on the Google Play™ Store for Android devices, and then load as you would any other app.
Once Pension Dynamics receives an accurately completed and signed Distribution Election Form, your distribution check will be issued and mailed to you within 10 business days.
The following list identifies eligible dependent daycare related expenses as defined by the Internal Revenue Service. These expenses are eligible for reimbursement through your Dependent Daycare Account provided they are incurred by your eligible dependents during the plan year, are for both you and your spouse (if applicable) to work, and have not been reimbursed through any other benefit plan.
The following expenses are not eligible: This is not meant to be a comprehensive list, but rather a list of ineligible items commonly submitted for reimbursement.
An itemized receipt will include the name of the patient incurring the expense, the date services were provided or the date the item was purchased, the Service Provider or Merchant’s name, a description of service/item purchased, cost of service/item purchased and any insurance payments and/or adjustments if applicable. An Explanation of Benefits (EOB) can also be submitted as an itemized receipt.
During the Open Enrollment period determined by your Company each year, you will determine how much you want to elect for either (or both) reimbursement accounts. The amount you elect will be divided evenly over all pay periods of the plan year. This means, if you elect $2550.00 for Health Care Reimbursement and $5000.00 for Dependent Daycare and you are paid semi-monthly, your deductions will be $106.25 per pay period for Health Care and $208.33 per pay period for Dependent Daycare. Those amounts are deducted prior to taxes being calculated to reduce your taxable income.
Your plan may have a vesting schedule for the employer contributions based on your years of service. The “vested amount” is the value of your account that is available to you when you leave the company. The Plan document determines the number of years it takes to be 100% vested. This information can also be found in your Plan’s SPD.
You can call the Human Resources department of your previous employer and request a copy of the Summary Plan Description (SPD) and Administrative Policies for details.
A Commuter Expense Reimbursement Program gives employees the ability to pay for qualified travel expenses with pre-tax dollars. This means you can set aside a portion of your salary, before taxes are calculated, and use that money to pay for work related parking and public transportation. The amount set aside is completely exempt from federal income taxes and Social Security (FICA), as well as California income and SDI taxes. This generates savings to both participants and employers.
The amount you elect for the Health Care Reimbursement Account is available on day one of the plan year regardless of how much you have contributed. This means you can have a major expense early in the plan year and the full amount, up to your election amount will be reimbursed upon receipt of a valid claim.
The Dependent Daycare Reimbursement Account is dollar in for dollar out so we can only reimburse you the amount you have contributed. Any claims submitted over that amount will pend in our system and will automatically issue payment when the next contribution is received.
You can pay for your COBRA coverage online by logging into your COBRA account, clicking on Premium Billing tab and then following the steps listed here. Payments can be made via a bank account draft from your checking/savings account or via a debit/credit card. There is a convenience fee for using this service.
Unfortunately, in almost all cases, the answer is “No.” However, if your plan account is held through a Self Directed Account platform, such as Charles Schwab, and you are rolling over your account to an IRA, – an in-kind distribution may be accomplished. You will need to contact your IRA custodian to see if they will accept an in-kind distribution.
A terminated employee/participant has until the end of the quarter following the due date of the last loan payment following their termination of employment to pay-off the full balance of the loan. If you are unable to make this payment, the loan is “offset” and the outstanding balance becomes a taxable distribution. You will be sent a 1099-R for the unpaid outstanding balance, and will be responsible for the taxes and penalties (if applicable) when you file your tax returns for that year.
The Dependent Daycare Reimbursement Account enables employees to pay for out-of-pocket, “work related” dependent daycare costs with pre-tax dollars. In some cases, this account may be used for adult daycare (the cost of daytime supervision of an adult child, spouse, or dependent parent who is incapable of caring for themselves). Daycare services may be provided by a friend or family member and still be eligible for reimbursement through the plan.
Under this type of account, a “dependent” is a child under the age of 13 (until the day of their 13th birthday) or an adult dependent who is not able to care for themselves. The dependent must live with you and be claimed as a dependent on your tax return in order to be eligible.
Paperwork will be mailed to you from Retirement Clearinghouse giving you various options for cashing out, rolling the money over to an IRA, or moving the money into another company’s retirement plan. You will be given 30 days to make your distribution election. If Pension Dynamics doesn’t hear back from you within 30 days, your funds will be rolled over to an IRA at Retirement Clearinghouse.
Orthodontia is normally paid via a payment contract between the patient and the orthodontist. According to the regulations, claims should be submitted according to that same payment contract. This means that when you submit your claim, you should include both the signed claim form as well as the contract that was provided at the time services began.
Many times these contracts state an initial payment is due at the beginning of service and then monthly payments for 18-48 months, depending upon what needs to be completed. The monthly payment amount is stated in the contract as well as the first due date and how many months you will be making payment to the orthodontist. Your reimbursements will mirror this contract. If your contract is for more than the plan year for the Flexible Spending Account, you will need to submit a new claim next year for the remaining months.
The dates of service would be listed as monthly on the claim form. This will have us set your claim as a recurring claim so you will not have to send us anything each time you make your payment. Initial payments are reimbursable the date that they are paid.
If you are not paying via a contract because you are able to get a discount for paying in full at the time of service, we will need to see a detailed invoice as well as proof of payment, and of course the completed claim form. With this information we will be able to issue reimbursement to you.
You can elect COBRA coverage online by logging into your COBRA account, clicking on Premium Billing tab and Elect Coverage Continuation. You may also need to complete a carrier enrollment form. Carrier forms can be found on the Benefits Tab by clicking on Documents, Documents for COBRA, then COBRA Election Forms. If there is no form available for your carrier then it may not be required.
The Health Care Reimbursement Account enables employees to pay for expenses that are not covered by insurance with pre-tax dollars. This account allows employees to be reimbursed for out-of-pocket medical, dental, and vision expenses as well as over-the-counter medications (with a valid prescription). Reimbursable expenses are similar to those normally deductible on a federal income tax return (without regard for the 7.5% of adjusted gross income limitation).
They include, for example, expenses incurred for:
*proof of medical necessity will be required prior to reimbursement
For a larger list of eligible expenses please click here and enter the access code: link to list
By clicking the "Forgot Login ID or Password?" Link below the Login button and entering the email address you used to register.
The following fees will apply to all loans:
Note: We recommend that you review the Plan Administrative Policy Regarding Plan Expenses for the applicable loan fees. Funds from “Paperless Loans” cannot be wired or electronically deposited to the Participant’s checking account. By cashing the check, you agree to the terms and conditions of the loan repayment guidelines.
You can access your account online here with the Login and Password to your previous employer’s plan and view your current balance and investment information. If you don’t remember your Login or Password, you can call Pension Dynamics at (888) 306-5465 for assistance.
To apply for a loan, a Participant must either submit a Loan Application and fax it to (925) 956-0506 or go online to www.pensiondynamics.com and request a loan electronically. Pending loans are pulled each morning by 7 am. Anything posted after 7 am will be processed the next business day.
Loans will normally be funded within 3-5 business days upon receipt by Pension Dynamics. Loans will not be approved unless the requested loan satisfies the requirements of the IRS and the Plan document.
A Flexible Benefit Plan, also known as a Section 125 Plan, Flexible Spending Account (FSA), or a Cafeteria Plan, gives employees the ability to purchase certain qualified benefits with pre-tax dollars -- essentially, exchanging taxable compensation for non-taxable benefits. These "tax-free benefits" can include:
Flexible Benefit Plans are so popular because they offer employees a choice of benefit options and because they allow both employees and employers to save tax dollars. In most cases, you need to spend the funds in your account within the plan year. However, your employer may provide you a grace period of up to 2½ months after the end of the plan year to spend funds left in either your Health Care Reimbursement Account or your Dependent Daycare Reimbursement Account. Or your employer may allow you to carry over up to $500 left in your Health Care Reimbursement Account into the next plan year. Please see your company Flexible Benefit Handbook to see if either of these options is offered by your employer.
Claims can be submitted online via the mobile app, or by downloading the Request for Reimbursement form from https://www.pensiondynamics.com/resources/forms and following the instructions on the form.
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