Flexible Spending Account(s)
Flexible Spending accounts allow you to annually contribute a portion of your salary to an individualized account before federal, state, and social security taxes are calculated. You may then be reimbursed from that account for eligible health, dental or dependent care expenses. The advantage of establishing a flexible spending account is that it allows you to reduce your taxes while increasing your spendable income. The types of flexible spending accounts are:
- Medical Care Reimbursement Account can be used to pay certain out-of-pocket medial/dental expenses not covered by the insurance plans.
- Dependent Care Reimbursement Account can be used to pay those costs of dependent care that enable the employee (and spouse, if married) to work. Day care or after-school care expenses for a child under age 13 or care for a spouse or adult dependent incapable of self-care are eligible for reimbursement.
Last revision 11/1995