| A Flexible Spending Account Plan provides you with tax savings while reimbursing you for out-of-pocket medical/dental expenses and/or work-related elder or child care expenses. You may deposit money on a pre-tax basis into one or both of the following accounts:
Health Care Account
Typical out-of-pocket costs for most employees include insurance deductibles and co-payments, glasses and un-reimbursed dental work. Also, routine physical exams and orthodontia may not be covered under your benefit plan. By enrolling in the Health Care account, you'll be able to cover these expenses with untaxed (pre-tax) dollars. A Health Care account allows you to direct a part of your pay, on a pre-tax basis, into a special account that can be used throughout the year to reimburse yourself for certain out-of-pocket health care expenses. Because this money goes into your account before Federal Income or Social Security taxes are withheld, you pay no taxes and have more disposable income. You can deposit up to $5,000 per year into this account.
Dependent Care Account
If your family is like many today, you may have dependent children who need care so that you can work. Or perhaps you have an elderly parent living with you whom you claim as a dependent on your tax return, and who may also need care so that you can continue working. As with the Health Care Account, you can direct a part of your pay, on a pre-tax basis, into a special account that can be used throughout the year to "pay yourself back" for certain work-related, dependent care expenses.
"Work-related" means just that. These expenses must be incurred to enable you and your spouse, if you are married, to work. Because this money goes into your account before Federal Income or Social Security taxes are withheld, you pay no taxes and have more disposable income. Subject to IRS rules, currently you can deposit up to $5,000 per family, per year, into this account.
For a Flexible Spending Account brochure, please contact the Employee Benefits and Wellness Division.
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