What does SERMA mean in EMPLOYMENT
The Sheltered Employee Retirement Medical Account (SERMA) is a tax-advantaged retirement savings program available to eligible employees. This program allows employees to save and accumulate funds for medical expenses in a tax-deferred account. The purpose of this document is to explain how SERMA works, as well as answer common questions about the program.
SERMA meaning in Employment in Governmental
SERMA mostly used in an acronym Employment in Category Governmental that means Sheltered Employee Retirement Medical Account
Shorthand: SERMA,
Full Form: Sheltered Employee Retirement Medical Account
For more information of "Sheltered Employee Retirement Medical Account", see the section below.
Essential Questions and Answers on Sheltered Employee Retirement Medical Account in "GOVERNMENTAL»EMPLOYMENT"
What kind of expenses can I pay with money taken from my SERMA account?
Money withdrawn from your SERMA account can be used to cover qualified medical expenses that are not covered by insurance or other sources such as Medicare, Medicaid, or employer-sponsored health plans. These include but are not limited to doctor visits and hospital bills, prescription drugs, eyeglasses and contact lenses, dental care, hearing aids, home health care services and more.
Who is eligible for a SERMA account?
In order to qualify for the SERMA program, you must be an employee of an employer who participates in the plan. Your employer will normally provide further details on their eligibility requirements. Additionally, all contributions are subject to Internal Revenue Service (IRS) annual limits.
Is there an age limit for setting up a SERMA account?
No, there is no age limit for setting up a SERMA account; however certain types of contributions become restricted when you reach 70½ years old. At this point Traditional IRA contribution rules apply which state that you cannot contribute beyond the age of 70½ without meeting special criteria.
How much can I contribute each year?
There are limits imposed by the IRS which change annually but generally you may contribute up to 00 USD per year into your SERMA account (00 if you are over 50). You should consult with your employer's plan administrator or with a financial advisor to learn more about potential contribution amounts and restrictions.
Can my spouse open their own SERMA account?
Yes; each person may establish their own individual SERMA account even if they are married or file taxes jointly with another person. Contributions must be made entirely by either one or the other spouse under their individual name and Social Security Number or Taxpayer Identification Number (TIN).
Final Words:
The Sheltered Employee Retirement Medical Account (SERMA) offers eligible employees an opportunity to save funds for medical expenses in a tax-deferred manner and provides additional security for employees during retirement years when medical care can become quite expensive. Before making any decisions about contributing funds into a SERMA it is important that you consult with your employers plan administrator or discuss your personal situation with a registered financial advisor.