About Flexible Spending Accounts
Flexible Spending Accounts utilize the provisions in the Tax Reform Act of 1986 to allow you to pay for certain expenses with before-tax dollars. By paying for these expenses before taxes, your spendable income will increase.
Employers can offer any or all of the following account types:
Please be sure to check with your employer to see which plans are offered.
Important Rules to Consider before enrolling in a Flexible Spending Account
- Use it or lose it - All funds deducted from your paycheck and are placed in a Flexible Spending Account must be used during the plan year or they will be forfeited. It is very important that you deduct what you normally expect to pay for out-of-pocket services.
- Your elections cannot be changed or revoked unless you experience a qualified family status change.
- Participation in Flexible Spending Accounts may slightly reduce your Social Security benefits.
- Funds cannot be moved from your healthcare to your dependent care account or visa versa.