  |
|
|||||
 | ||||||
|
|
Flexible benefit plansIt's like a money back guarantee—on life!How to save 30 to 40 percent on medical expenses, insurance premiums and day careFlexible benefit plans allow you to have a certain amount of money deducted from your paycheck, before any taxes are calculated, to pay certain medical and dependent care expenses. Because it's tax-free, the amount you set aside is 30 or 40 percent more (depending on your tax bracket) than you would otherwise be able to spend. You could save thousands of dollars every year! If your employer has signed on for our Beniversal MasterCard® card option, you'll be able to access those funds as quickly as you can swipe the card. Read more about the accounts below or go directly to how Flexible Spending Account (FSA) plans work and instructions for enrolling. Medical Flexible Spending Accounts (FSAs)FSAs are accounts in which you set aside tax-free contributions for medical expenses. Your employer will set the annual limit for your contributions. Medical FSAs allow you to pay for:
Dependent Care FSAsDependent care FSAs allow you to use tax-free dollars for eligible dependent care expenses for:
The federal government sets the dependent care limits. For 2005, they are set at $5,000 per year. In order to qualify, the care must be necessary to enable you to work. If you're married, you must also be working, looking for work, or attending school fulltime. If you meet these criteria, then these expenses are covered:
Insurance premiumsMost flexible benefit plans automatically deduct the cost of certain group insurance premiums from your paycheck, tax-free. They include:
|
 Thirty to forty percent savings on all of these expenses can add up quickly!
Calculate what you'll save Visit our Tax Savings Calculators for a quick idea of your savings. Example 1: Joe and the Medical FSA Joe estimates $300 in out-of-pocket medical expenses for the year, + $200 in over-the-counter medications + $150 in dental expenses + $250 for new prescripiion glasses. Total expenditure: $900. At a 35 percent tax savings, he gets to keep $315 that he would have otherwise sent to the government in taxes. Example 2: Jane and the Dependent Care FSA Jane has a 6-month-old in day care ($3,000 a year) and a 6-year-old who attends after-school care ($900). Jane's total spending: $3,900. At her 35 percent tax bracket, her Dependent Care FSA saves her $1,365 every year in money that she does not pay to the government.
|
 |
||
 |
 |
|
|
|
|