… Give You Choices
You can contribute to the health care spending account, the dependent care spending account, or both. Each year, you can contribute up to $5,000 to the health care spending account to pay for certain unreimbursable medical, dental, vision care, prescription and eligible over-the-counter drug expenses, and up to $5,000 to the dependent care spending account to pay for day care and elder care expenses for Eligible Dependents.
… Offer Convenience
Your flexible spending account contributions are automatically deducted from each paycheck and credited to your flexible spending accounts.
… Save You Money in Taxes
The money in your accounts is not subject to federal income taxes, Social Security taxes or Medicare taxes. And, in most places, state and local taxes also do not apply. This means that many of your routine health and dependent care services will actually cost you less.
… Require Careful Planning
You need to estimate your expenses for the upcoming year carefully, during the annual benefits Open Enrollment, when deciding how much to contribute to the flexible spending accounts. According to Internal Revenue Service rules, any money left in your account at the end of the year will be forfeited. |
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