Flexible Spending Benefits
If your employer offers a flexible spending arrangement for health or dependent care, utilizing this benefit will lower your taxable wages and save you taxes. Under a flexible spending arrangement, you elect to have a portion of your pay withheld and deposited in a plan account. As you submit proof of expenditures, the plan reimburses you from the account.
-
Beware, any unspent amounts at year end will be forfeited.
- Check with your employer about the types of health care expenses for which you can be reimbursed. The IRS recently expanded the list of allowable expenses to include over-the-counter medicines or drugs, such as antacids, allergy medicines, pain relievers, and cold medicines.
© 2006-2010, All Rights Reserved