What is a Flexible Spending Account Plan?

The Flex Plan is a tax-savings benefit program sponsored by your employer that lets you pay for your benefits off of the top of your paycheck, before taxes are withheld. Your employer holds your funds until you submit claims for your qualified healthcare and dependent care expenses and you are reimbursed from your accounts tax-free. The Flex Plan increases your take-home pay because you pay less in taxes!

General Information About The Flex Plan

Medical Flex Spending Account (Med-FSA)

The Medical Flex Spending Account (Med-FSA) allows you to set aside some of your pre-tax earnings to pay for your out-of-pocket medical expenses. When you elect to participate in the Med-FSA, a portion of your annual election is deducted pre-tax from the top of your paychecks during the year. You send in claims for your eligible expenses and you are reimbursed tax-free. This increases your take-home pay because you pay less in taxes!

Dependent “Day Care” Expenses (DCAP)

The Dependent Care Assistance Account allows you to set aside some of your paycheck each pay period for your work-related day care expenses. This amount is deducted from your paycheck each period, tax-free. During the year, you send in claims to be reimbursed from your account for your expenses, tax-free. This increases your take-home pay because you pay less in taxes.

Important Information

  • This is a brief introduction to the Flex Plan and should not be considered tax or legal advice. Please contact your personal tax advisor regarding your personal situation.
  • Your Flex Plan may not offer all of the benefits options shown here and the actual procedures and requirements of your Flex Plan may be different.
  • For specific information about your Flex Plan, please refer to your Summary Plan Description (SPD). The SPD provides you with important information regarding the Plan including:
    • plan year and enrollment periods
    • benefits available under the plan
    • contribution limits
    • eligibility requirements
    • plan participation requirements
    • claims filing procedures and deadlines