What is Flexible Spending?
Flexible Spending Account plans are a tremendous opportunity for you to enhance your benefits package. Your employer knows that these are highly beneficial programs and wants you to have the opportunity to participate in an IRS Section 125/Flexible Spending Account Plan administered by Cafeteria Plan Advisors, Inc. (CPA, Inc.), for the plan year of July 1, 2018 through June 30, 2019. Most employees pay for expenses such as dependent care and health care on after tax basis. These programs allow you to set aside a portion of your paycheck tax free to pay for those expenses. The result is a reduction in your taxable income, which will give you an increase in your take home pay. Don’t miss out this opportunity to save between 28-34% in taxes.
Health Care Account
Employees may set aside up to $2,650 per plan year to pay for out-of-pocket medical/dental expenses for themselves and their family members. Examples include:
- Copays for office visits and prescription drugs
- Deductible expenses
- Orthodontia and other dental expenses
- Contact lenses, eye glasses, laser eye surgery
- Visits for Chiropractic Care or Acupuncture
Dependent Care Account
Employees can set aside up to $5,000 per plan year to pay for out-of-pocket dependent care expenses for children under the age of 13 or elderly parents. This includes:
- Before School Care & After School Care
- Summer Day Camp
- Elder Care
Although you can claim dependent care expenses when you file your taxes, in most cases, people are able to save more money this way. Please consult your tax advisor. A dependent care claim is required for reimbursement each plan year.