Flexible Spending Accounts

"Cafeteria Plans" offer a large menu of benefit options to employees

Flexible Spending Accounts (FSAs), commonly referred to as "Section 125" plans or "Cafeteria" plans, were developed as part of Internal Revenue Code Section 125 to provide employees with tax relief for their un-reimbursed medical and dependent day-care costs. FSAs enable employees to utilize pre-tax dollars and save Federal, FICA, and, in most cases, state taxes when paying for eligible expenses not covered by traditional insurance plans.

Although FSAs have been available for many years, the emergence of consumer-driven healthcare and increased employee cost-sharing has made them an integral benefits solution that provides substantial tax savings to both employers and employees.

We offer two types of Flexible Spending Accounts:

• Medical Reimbursement Accounts: Accounts used to pay for eligible un-reimbursed medical expenses such as co-pays, deductibles, dental, vision, prescription, over-the-counter drugs, and more.
• Dependent Day-Care Reimbursement Accounts: Accounts used to pay for the daily care of an eligible child or adult dependent as defined by the IRS.