How Your Paycheck Buys More

A Flexible Benefits Plan helps your paycheck buy more!

Sometimes referred to as a cafeteria plan, flex plan, or Section 125 plan – a Flexible Benefits Plan lets you set aside a certain amount of your paycheck into an account – before paying income taxes. During the year you have access to this account for reimbursement of expenses you regularly pay for, such as healthcare and/or dependent daycare.

When you use tax-free dollars to pay for these expenses, you realize an increase in your spending power and substantial tax savings.

Here’s how it works…

Example: An employee makes $2,000 each month and decides to participate in their employer’s Flexible Benefits Plan. As a result, their insurance premiums and health and daycare expenses are paid with tax-free dollars, giving them an additional $100 each month!

expenses without the plan expenses with the plan

Reimbursable expenses can include:

  • Deductibles, Co-pays, and Prescription Drugs
  • Expenses not covered by insurance
  • Dental Services & Orthodontics
  • Eyeglasses, Contacts, Solutions & Eye Surgery
  • Weight-loss Programs (dual use, requires a doctor’s prescription)
  • Chiropractic Services
  • Psychiatric Care & Psychologist’s fees
  • Mileage for Healthcare
  • Over-the-Counter Drugs that are medically necessary with a doctor’s prescription
  • All non drug over-the-counter (OTC) items
  • Adult & Child Daycare services