5.3. ERMUSR 02-09-2010 - Laserfiche WebLink

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Earned Income shall have the meaning given such term in Section 32(c)(2) of the Code Deleted: (d) (which refers to wages, salaries, tips and other Employee as well as net Deleted: compensation earnings from but shall not include any amounts reimbursed by the Employer under this portion of the Plan. Further, if a Participant's Spouse is a Student or Deleted: self-employment), incapable of caring for himself or herself, the provisions of Section 21(d)(2) of the Code shall apply in determining the Earned Income of that Spouse. Generally, this Section provides that a Spouse of a Participant shall be deemed to have Earned Income of not less than $250 per month if there is one Qualifying Individual with respect to the Participant or $500 per month if there are two or more Qualifying Individuals with respect to the Participant. (f) Gainfully Employed means the earning of income for services performed or the period of active search for gainful employment. Nominal reimbursement for volunteer work is not considered gainful employment. (g) Highly Compensated Employees means Employees who are highly compensated as defined in Section 414(q) of the Code. Deleted: ny individual who is: Deleted: (1) (h) Non-Highly Compensated Participants means Employees who are not Highly Deleted: dependent (as defined in Compensated Employees. Deleted: (a)(1) (i) Qualifying Individual means a Deleted:) of the Pamcipant Deleted: age of 13; or¶ (2) A Spouse or a dependent (as defined in A Deleted: , Section 152 of the Code Deleted: subseRions under Deleted:, Deleted: and (d)(1)(B) thereof) the Section 152 of the Code Deleted: Participant determined without regard to (b)(1) (b)(2) of the who i5 physically care Deleted: or mentally incapable of self- Deleted:and Deleted: more than Deleted: year. Who hds the same principal place Of abode a5 the Deleted: Unless two people are married and Partici ant for One-half Of the p fle a joint tax return, only one person may request reimbursement of expenses incurred with respect to a particular child, even where the Who the child satisfies the definition of "child" as [o has more than one person. Special rules apply to the determine which person may receive the reimbursements where more than one person wants to receive reimbursement for expenses incurred with respect [o a particular child.¶ is entitled to ¶ t0 Special Tie-breaker Rules. In general, Deleted: parent Deleted: custody for the longest period during the calendar year (i.e., Deleted: "custodial" parent) Deleted: receive reimbursement for Dependent the Child Care Expenses. This is true even though [he non-custodial parent may be allowed the child Deleted: receive Deleted: tax credit and the dependency exemption for © 2009 Hitesman & Associates, P.A. 29 Elk River Municipal Utilities Flexible Benefits Plan (No. 8.0.0.0)