Flex Benefit Plans

A Flexible Benefit Plan (Section 125 of the IRS Code) allows full-time employees to set aside money through payroll deductions to pay for eligible expenses with tax-free dollars, resulting in reduced taxes and more take-home pay. You can potentially save 20 - 40% on federal, state, and local taxes, including Social Security and Medicare.

How Do they Work?

There are two types of Flexible Benefit Plan accounts

Premium Accounts

If you enroll in your Group Health Plans such as medical & vision and/or dental insurance, your premiums will automatically be deducted from your pay before taxes.

Reimbursement Flexible Spending Accounts (FSAs)

Upon enrollment, you select a portion of your salary to be deducted from each paycheck for your Flexible Spending Account(s). Once you enroll, you may not change or stop your payroll deductions until the next Open Enrollment period, unless you experience a 'Life Event' (as defined by the IRS Code) such as marriage, birth or adoption, death of a child or spouse, divorce, and gain/loss of spouse's employment.

When you participate in a FSA, the money in your account must be used within our benefit plan year starting January 1, or you will lose that money. In addition, your FSA may only be used to reimburse eligible expenses incurred within the benefit plan year (again January 1 to December 31). If you elect to participate in the plan, it is important that you carefully project your medical and/or dependent care expenses for the plan year before enrolling. We have several tools to help you estimate you FSA usage. Just click on any of the links below:

There are two reimbursement Flexible Spending Accounts available:

FSA for Medical Expenses

While your Group Health Plan offers you and your family considerable protection against the high cost of health care expenses, you will probably have a number of health care expenses that you will pay for out of your own pocket each plan year.

By participating in a medical FSA, you save money using pre-tax dollars to pay for out-of-pocket health care expenses, such as deductibles, co-payments for office visits, co-payments for prescriptions, uninsured medical care, uninsured dental care and uninsured vision care.

FSA for Dependent Care Expenses

Dependent care expenses for eligible dependents can be expensive. Participation in a dependent care FSA, lets you can stretch the dollars you spend on day care, preschool, summer day camp, after-school care, etc. by using pre-tax dollars to pay for these expenses. You may defer up to $5,000 tax-free into a dependent care FSA per plan year to cover the cost of caring for dependents while at work. Funds must be available in your account before you can be reimbursed.