Tax$ave Accounts
Tax$ave, allows eligible employees of the State of New Jersey to set aside before-tax dollars to pay for certain medical, dental, and dependent care expenses, thereby avoiding federal taxes and saving money.
An eligible employee is any employee of the State, a State college or university or other State agency who is eligible to participate in the State Health Benefits Program, except those part-time employees made eligible under P.L. 2003, c. 172.
Tax$ave consists of three separate component plans. An eligible employee may elect to participate in any combination—all, some, or none of the plans.
The three components of Tax$ave are:
- The Premium Option Plan (POP) allows an employee to pay any SHBP medical and/or dental payroll contributions or premiums with before-tax dollars.
- The Unreimbursed Medical Flexible Spending Account (FSA) allows an employee to set aside money to pay for anticipated medical services and medical supply expenses not normally covered by insurance.
- The Dependent Care FSA is a pre-tax benefit account used to pay eligible dependent care services, such as preschool, summer day camp, before or after-school programs, and child or adult daycare.
Ways You Can Save With Tax$ave
A Flexible Spending Account (FSA) is an account you set up for your anticipated eligible out-of-pocket expenses.
Medical
Your Medical Flexible Spending Account lets you put aside pre-tax money to pay for eligible health care expenses throughout the year. You may use your FSA money to pay for eligible medical expenses which aren’t covered by your insurance or other plan. These expenses can be incurred by yourself, your spouse or a qualifying child or relative. You must actively enroll each year to participate in an FSA.
For 2024, participants can contribute $2,500 to a Medical FSA.
Dependent Care
Your Dependent Care Account Plan (DCAP) lets you put aside pre-tax money to pay for dependent care expenses throughout the year and can be paired with almost any other kind of consumer account. You may use your DCAP money on out-of-pocket child care or other dependent care (disabled spouse/child or elder care) expenses.
Participants can set aside up to $5,000 annually.
Commuter
For the 2023 calendar year, eligible employees may execute salary reduction agreements to have up to:
- $300 per month ($3,600 per year) deducted from salary to pay for mass transit costs (includes train, bus, ferry, and vanpool expenses); and/or
- $300 per month ($3,600 per year) to pay for parking at work or at park-and-ride sites.