Flexible Spending Account
What is Flex Spending?
A Flexible Spending account is for both health expenses and dependent care expenses that are incurred during the plan year (July 1-June 30).
Employees may allocate a portion of monthly earnings, pre-tax, to be used for health expenses and dependent care expenses, which can result in substantial tax savings. This amount is locked in for the plan year.
To participate there is a $3 monthly charge, if you want the Benefits Card there is an additional $1.50 charge.
The maximum you may set aside for health expenses is $2,750 per year.
The maximum you may set aside for dependent care is $5,000 per year.
FLEX reimburses you for eligible expenses incurred July 1st 2020 -
June 30th 2021 (with a grace period that extends to September 15th) All claims must be submitted for the prior plan year by December 15
This is a use or lose benefit
Paying for medical expenses through the Flex Spending Plan can save you as much as 25%-28% in taxes on each dollar spent for your share of insurance deductibles, co-pays, or items not covered by insurance. Also, the Dependent Care Flexible Spending Account may save you more in taxes than the
day-care tax credit (filed with your federal income tax return).
NOTE: If you are in the HDHP and have a Health Savings Account you are not eligible for medical flex spending, but you are eligible for dependent care.