Individual Medical Account Sample Clauses
An Individual Medical Account clause establishes a dedicated account for an individual, typically to manage and pay for medical expenses. This account is usually funded by an employer, insurer, or the individual themselves, and can be used to cover eligible healthcare costs such as doctor visits, prescriptions, or treatments. The clause outlines the rules for contributions, withdrawals, and permissible uses of the funds. Its core practical function is to provide a structured and tax-advantaged way to save for and pay medical expenses, thereby offering financial flexibility and helping to manage healthcare costs.
Individual Medical Account. Individual medical account means an account, as defined in section 415(1)(2) of the Code maintained by the Employer or a controlled group member which provides an annual addition.
Individual Medical Account. This letter is to confirm the understanding and agreement reached between Sikorsky, a Lockheed ▇▇▇▇▇▇ Company and Sikorsky Teamsters Local 1150 of the International Brotherhood of Teamsters, concerning the Individual Medical Account.
(a) Implement the Individual Medical Account for the accumulation of funds to help offset medical costs for retirees.
(b) Beginning, December 4, 2023, contributions will be $1 to $23 per week, in whole dollar amounts, which will be matched by the Company at 75%.
(c) Employees in the following age categories may contribute additional amounts, each week and be matched at 75%, as indicated below. Age Category Additional Matched Contribution Per Week 50 – 54 $1 – $9 55 – 59 $1 – $10 60+ $1 – $11
(d) Employees may put part (in whole dollar amounts) or all of their contributions into the account on a before-tax basis in accordance with Section 401(k) of the Internal Revenue Code. Once an employee has reached the before-tax limit as set out in Section 402(g) of the Internal Revenue Code and as specified in regulations of the Internal Revenue Service, contributions to the IMA will roll over into an after-tax 401(a) account.
(e) All contributions and Company match will be invested in the Income Fund.
(f) No in-service withdrawals are permitted.
(g) No loans are permitted.
(h) Employees are immediately vested in Company contributions if currently vested in the Savings Plan, or when they become vested in the Savings Plan, but in no more than 2 years from start of their participation in the Individual Medical Account.
(i) Upon termination prior to retirement, employees may leave their funds in the Individual Medical Account if the combined total of Savings Plan and IMA funds is at least $1,000.
(j) Employees who are suspended from the Employee Savings Plan will not be suspended from the Individual Medical Account.
(k) The payout options are the same as for the Savings Plan; except if the account balance at retirement is less than $1,000, a lump sum payment must be taken.