is participation in cafe 125 mandatory, or can I opt out of this?
Posted by Caffe | Posted in United States | Posted on 13-02-2010
Tagged Under : Cafe 125, Money, Participation
tonyatoothfairy asked:
I never come close to maxing out my medical benefits, so I never use this money. Can I opt out and just pay directly out of pocket if something pops up?
I never come close to maxing out my medical benefits, so I never use this money. Can I opt out and just pay directly out of pocket if something pops up?
Cafe plan participation is always optional on an opt-in basis. Since you lose any funds that are unused at the end of the tax year — or the extended deadline if your employer offers it — you should determine the estimated amounts as accurately as possible in advance.
Don’t forget that you can always pre-pay a bill during the tax year and have the work done later. I did that with mine last year, knowing that I was facing some hefty dental bills early this year.