Faculty Handbook 14. The Amherst Plan

With the Amherst Plan, a flexible spending plan established under Section 125 of the Internal Revenue Code, all faculty members may elect annually to pay for certain eligible expenses with before-tax salary dollars—dollars excluded from income for Federal, State and Social Security purposes. By taking advantage of the tax savings options offered by the plan, faculty members may increase their take-home pay. Faculty may choose to make before-tax deductions for any health insurance premiums they pay and/or set aside salary dollars to cover qualified out-of-pocket health and dependent care expenses. Expenses incurred during a plan year will be reimbursed up to the amount set aside in the related account. The IRS requires that any money remaining in a faculty member's account at the end of a plan year will be forfeited.