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!
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