A Flexible Spending Account is an account that allows you to reimburse yourself with pretax dollars for eligible out-of-pocket healthcare costs and/or the daycare costs associated with caring for a qualified dependent. It is administered through Flexible Benefits Administrator and is available for all employees who work more than 30 hours per week. You may contact Flexible Benefits Administator at 800-437-3539 or at http://www.flex-admin.com.
DEPENDENT FLEX PLAN
You can designate up to $5,000 a year on a pre-tax basis; $2,500 if filing separate tax returns. You can then use the funds to pay dependent care expenses (IRS reportable).
MEDICAL FLEX PLAN
For those not participating in the HDHPs
You can designate up to $2,750 a year on a pre-tax basis. The FSA is a use it or lose it, outside of the $500 rollover that is allowed. You can use the funds to pay qualified out-of-pocket expenses such as:
- Medical expenses
- Dental expenses
- Vision expenses
- Some over-the-counter (OTC) prescribed by your physician
How it Works
The money you set aside is never counted as income. That means it is not subject to Federal Income Tax, Social Security, Medicare, and in most cases, state and local taxes. This lowers your taxable income and increases your spendable income. Depending on your tax situation, you could save 20-40% on expenses you would be paying anyway.
