Benefits Q&A

With all the benefits available to Baptist Health employees, it’s no wonder that you have questions from time to time about them. This is the place to ask away. From health insurance to retirement plans, from dental to long term care – this is the place to ask someone who can get you the answer you are looking for.

This is NOT the place to ask specific, personal questions regarding the status of your  health claim, etc. Please contact your insurance vendor directly for that.

Here are some sample questions:

1. Can I take my Term Life/AD&D policy with me when I leave Baptist Health.

-No. Your policy is not portable. It terminates when you do, and also terminates if you retire before age 65. If you retire at age 65 or later, your life benefits reduce to 50% of your salary (from 1X salary) as of the date of your retirement, and to $1,000 at age 70. Benefits will NOT be reduced if you continue to work full time at Baptist to age 65 and beyond.

2. When can I start contributing to the 403(b) plan, and how much can I contribute?

You can start Immediately upon employment to set money aside each pay period into your 403(b) plan.  In 2007, you can contribute up to $15,000. If you are over age 50, you may contribute an additional $5,000.

3. What are the new tax changes for 2007, and how do they affect me?

Relief for Taxpayers Who Lose Their Homes Due to Foreclosure. For foreclosures in 2007, 2008, and 2009, debt forgiven in connection with a foreclosure, short sale, or loan restructuring will not be treated as income.

• This relief applies only to principal residences, that is, the home you live in. If a lender forgives debt after a foreclosure, short sale, or loan restructuring for a vacation home or investment property, for example, the general rule still applies: The amount of debt canceled is considered taxable income to you (unless you are in bankruptcy or insolvent).
• No more than $2 million of forgiven debt can be excluded from income.
• To be eligible for the break, the loan must be secured by your principal residence and the money must have been used to buy, build, or substantially improve the property. If part of the forgiven debt was a home equity loan or cash-out refinancing used for other purposes, that part would be considered taxable income.
• The tax basis of the home is reduced by the amount of canceled debt excluded from income.

Higher Income Limits for Deductible IRAs and for Roth IRAs. If you are covered by a retirement plan at work, you can take a full IRA deduction if your modified adjusted gross income is less than $83,000 (married filing jointly) or $52,000 (single or head of household). A partial deduction is allowed until your adjusted gross income reaches $103,000 if you are married filing jointly or $72,000 if you are single or a head of household. Also, the opportunity to contribute to a Roth IRA is now phased out as your modified adjusted gross income rises between $156,000 and $166,000 if you are married filing jointly or $99,000 to $114,000 if you are single or a head of household.
Indexed Tax Brackets. Thanks to higher inflation in the past year, the 15 percent, 25 percent, 28 percent, 33 percent, and 35 percent tax brackets all kick in at a bit more than 4 percent higher levels of income than in 2006.
Larger Personal Exemptions. For 2007, each personal exemption you can claim is worth $3,400, up by $100 from 2006.
Higher Standard Deductions. For 2007, the standard deduction for married filing jointly rises to $10,700, up by $400 from 2006. For single filers, the amount increases to $5,350 in 2007, up by $200 over 2006. And heads of household can claim $7,850 in 2007, a jump of $300 from 2006.
Reduction in Itemized Deductions and Personal Exemptions for High-Income Taxpayers. Currently, itemized deductions and personal exemptions are phased out (reduced) as your income rises. In 2007, the reduction of itemized deductions occurs once your adjusted gross income exceeds $156,400, regardless of your filing status. Your itemized deductions are reduced by 2% of the amount by which your AGI exceeds $156,400, but you can never lose more than 80% of your itemized deductions. Also, your medical expenses, investment interest deduction, deductible gambling losses and any casualty and theft losses are not subject to the cut. Personal exemptions are reduced by 2% for each $2,500 of adjusted gross income over $234,600 for marrieds filing jointly, $195,500 for heads of households and $156,400 for singles, but the reduction cannot exceed $2,200 per exemption.
Tax-free Parking for Employees. Starting in 2007, employees are not taxed on up to $215 a month of employer-paid parking, up $10 per month from 2006. The cap on tax-free transit passes their employers can give rises to $110 a month, up $5 a month from 2006.
Increased Contribution Limit for 401(k) Plans. The maximum employee contribution rises to $15,500 from $15,000 for these and similar workplace retirement plans including 403(b)s and the federal Thrift Savings Plan. The limit for workers age 50 and older rises to $20,500, also a $500 increase from 2006.
Exemptions for the Alternative Minimum Tax. Congress increased the AMT exemptions for 2007 to prevent millions of additional taxpayers from having to pay the AMT. For 2007, the exemptions are $44,350 for single taxpayers and heads of households, $66,250 for married couples filing joint returns, and $33,125 for married couples filing separately. Unless Congress acts in 2008, the exemption levels will drop to $45,000 for married filing jointly, $33,750 for singles and heads of household, and $22,500 for married couples filing separately.
Income Earned Abroad. The maximum foreign earned income exclusion is increased to $85,700 this year (up from $82,400).

Source: TurboTax

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