Flexible Spending Accounts
A Flexible Spending Account (FSA) is an IRS Code Section 125 Cafeteria Plan. Through it, you may set aside funds on a pre-tax basis each year into your FlexSystem account(s), and subsequently access those funds for qualifying healthcare and/or dependent care expenses incurred within the Plan Year.
Benefits of Flexible Spending Accounts
- Reduces income tax (Federal, State, and FICA): pre-tax payroll contributions result in a lower taxable salary.
- Saves on the cost of eligible healthcare and/or dependent care expenses: using pre-tax dollars spells out a savings of nearly thirty percent.
- Offers immediate access to elected healthcare FSA funds.
- Covers common types of expenses: medical, dental, ortho, vision, prescription drugs, day care, and more.