Contributions that are taken from your pay after federal, state, and local income taxes are withheld.

Contributions that are taken from your pay before federal (and, in most cases, state and local) taxes are withheld. Before-tax dollars are also generally taken from your pay before Social Security taxes are withheld. This lowers your taxable income and your income tax liability. Your benefits under the 401(k) Savings Plan, Retirement Plan, Life and Accident Insurance Plans, Disability Leave Policy, and Long-Term Disability Plan will continue to be based on your full, unreduced benefits pay.

Keep in mind that before-tax contributions do not count as earnings for Social Security purposes. Therefore, your future Social Security benefit could be slightly reduced if your total earnings for the year are less than the Social Security wage base ($102,000 for 2008). However, this reduction is nominal and may be outweighed by the immediate tax savings resulting from using before-tax dollars to pay for your benefits.

The company that provides certain claims administration services for the Spending Accounts.

ADP is the claims administrator for the Health Care and Child/Elder Care Spending Accounts.

WageWorks is the claims administrator for the Transportation Spending Accounts.

JPMorgan Chase is not involved in deciding appeals for any benefit claim denied under the Spending Accounts. All fiduciary responsibility and decisions regarding a claim for a denied benefit under the plan rest solely with the claims administrator.

A federal law that allows you to continue Health Care Spending Account participation on an after-tax basis (under certain circumstances) when coverage would otherwise have ended. The "Plan Administration" section of this Guide provides details on COBRA coverage.

Under the Health Care Spending Account and Child/Elder Care Spending Account, your eligible tax dependents can include your spouse, a qualified adult dependent (including a domestic partner or extended family member who is your tax dependent) and your dependent children, including the children of your domestic partner if they are your tax dependents.

Health Care Spending Account. Eligible expenses generally can include medical, dental, and prescription drug copayments, deductibles, and coinsurance; eyeglasses; frames; contact lenses; certain over-the-counter medications; and other health care expenses that aren't reimbursed by other plans. Insurance premiums are not considered eligible expenses.

Child/Elder Care Spending Account. Eligible expenses can include day care for dependent children under age 13 and disabled dependent adults, enabling you and your spouse (if you're married) to work, or enabling your spouse to either look for work or attend school full time.

Transportation Spending Accounts. Eligible expenses can include expenses that you incur in your commute (such as mass transit costs and parking expenses) between your home and work at JPMorgan Chase that can be paid for under federal tax law with money you've contributed to the Transit Account and/or Parking Account. These expenses are subject to monthly maximums under federal law. Please Note: Any eligible expenses that exceed monthly before-tax maximums will be deducted on an after-tax basis.

An extended deadline to incur eligible expenses under the Health Care Spending Account. If you are participating in the Health Care Spending Account on December 31, you are able to incur eligible expenses through March 15 of the following year and use balances from the previous year for reimbursement of eligible expenses.

Health Care Spending Account. January 1 through December 31.

Child/Elder Care Spending Account. January 1 through December 31.

Internal Revenue Service (IRS) publications that can be used as a guide to determine eligible and ineligible expenses under the Health Care Spending Account, Child/Elder Care Spending Account, and Transportation Spending Accounts. You can request a copy by calling the Internal Revenue Service (IRS) at 1-800-829-FORM (1-800-829-3676), or you can view these publications by logging on to www.irs.gov via the Internet.

The JPMorgan Chase benefits you elect during each annual benefits enrollment period will generally stay in effect throughout the plan year, unless you elect otherwise due to a qualified change in status (such as marriage, divorce, or the birth or adoption of a child, etc.) within 31 days of the event for benefits to be effective the date of the event. If you miss the 31-day deadline, coverage for certain benefits will be effective as of the date you contact the Benefits Call Center.

Please Note: Any changes you make during the year must be consistent with your qualified change in status. Please see "Qualified Change in Status" for more information.

Health Care Spending Account. The amount of your eligible expenses, up to your annual contribution amount (minus any previous reimbursements).

Child/Elder Care Spending Account. The amount of your eligible expenses, up to the year-to-date amount already contributed (minus any previous reimbursements).