Author Topic: 125 plans  (Read 1554 times)


  • Pencil Stache
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125 plans
« on: February 24, 2018, 05:40:51 AM »
So I have access to 125 medical and 125 dependent care plans at work. One thing that always grinds my gears with them is you can only make adjustments during open enrollment. I could have maxed the medical out in 2017 and I would have used it all up with a gull bladder surgery for my wife and tubes for my son. But then if you max it out and don't use it. You "lose" your money. this bugs me. where does the money go? does it just disappear? shouldn't it just come back to me as taxable income?

Proud Foot

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Re: 125 plans
« Reply #1 on: February 26, 2018, 12:52:00 PM »
Yes it is a little frustrating when you have a surprise and cannot add anything additional for the benefit. If you max it out and don't use it all then your company gets to keep it. Yes it is a risk, but at the same time you can max it, use it all up and then quit without having to reimburse your employer (only for the medical portion, dependent care is available for reimbursement as it it contributed). Check with your HR. A few years ago changes were made to where 125 medical plans were allowed to roll over up to $500 to the next year. There were provisions to it though, one being your company had to amend the 125 plan allow the rollover.


Wow, a phone plan for fifteen bucks!