FLEXIBLE SPENDING ACCOUNTS
Example of Savings - How it all works
Use pretax dollars to pay for your healthcare, daycare and other eligible expenses and start taking home more money in your paycheck that is yours to keep!
Flexible Spending Accounts (FSA's) are also know by other names such as a Flexible Benefits Plans, Cafeteria Plans, Flex Plans, or Section 125 Plans. Regardless of the name, these plans let you set aside a predetermined amount (set by you) of your paycheck into an account before your income taxes are calculated. In this way you are not paying taxes on the amounts you contribute to the Flexible Spending Accounts.
Then, during the year, you have access to these funds for reimbursement for certain healthcare and dependent daycare expenses with tax-free dollars.
By using your tax-free dollars to pay for these expenses, you just realized an increase in your spending power and you have given yourself a pay-raise.
Phone 800.562.9383 Fax 916.921.3383
Integrity Administrators, Inc.
EXCELLENCE IN THIRD PARTY ADMINISTRATION
The maximum FSA contribution limit and how that limit can increase are mandated by provisions of the 2010 health care reform law. For 2016, the annual limit on FSA contributions was set at $2,550 and the limit is expected to remain unchanged in 2017.