| Sometimes referred to as a
cafeteria plan, flex plan, or a Section 125 plan, a Flexible Savings Account
(FSA) lets you set aside a certain
amount of your paycheck into an account — before paying income taxes.
During the year, participants have access to this account for
reimbursement of expenses that insurance does not cover.
For example:
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Health insurance, other premiums, and
co-pays. |
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Prescription drugs and medical
supplies. |
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Dental services, orthodontics, and
dentures. |
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Eyeglasses, contacts, solutions, and
eye surgery. |
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Weight-loss programs (associated with
a specific disease). |
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Chiropractic services. |
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Psychiatric care and psychologist's
fees. |
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Smoking cessation programs. |
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Adult and child daycare services. |
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Adoption expenses. |
When you use tax-free dollars to pay for
these expenses,
you realize an increase in your spending power, and
substantial tax savings. |