Flexible Spending Account (FLEX)
A Flexible Spending Account (FSA), also called flex plan, reimbursement account, Flex 125, Tax Saving Plan, Medical Spending Account, a Section 125, or a Cafeteria Plan, is an employer-sponsored benefit that allows employees to pay for eligible health care expenses, such as refractive laser surgery, with pre-tax dollars.
How it works
The money you put into a Flexible Spending Account is deducted from your pay BEFORE your Federal, State, or Social Security taxes are calculated, resulting in a decreased amount of taxable income that you report. You can save hundreds or even thousands of dollars each year through an FSA. The higher your tax bracket, the more you save.
Please note that it’s recommended you check with the Benefits Manager where you work to see if your company participates in an FSA program and how that particular program works. It’s important you carefully calculate how much money to contribute for the year. By law, you’ll lose whatever unused amount remains in your account at the end of the year.