Did you know...
you could avoid paying income taxes on funds you set aside for certain out of pocket health, dependent day care and commuting costs?

 
Are you wondering what FSA and Transportation/Parking accounts
are and why you should enroll?

Well, you have come to the right place!

A Flexible Spending Account (FSA) is a cafeteria plan under Section 125 of the IRS code that allows employees to have a portion of their pay set aside for reimbursement of eligible health care and/or dependent day care expenses. These payroll deductions are taken out of your pay before federal income, state income (in most states) and Social Security taxes are calculated.

  Presentation
Benefits of a Health FSA
bullet FSA dollars are ready to pay for health-related, out-of-pocket costs not covered by insurance for you, your spouse and your eligible dependents.
bullet Copayments, deductibles, prescriptions, dental expenses and vision expenses are a few items eligible for reimbursement through the Health Care FSA plan.
bullet And don’t forget, over-the-counter (OTC) items can be eligible for reimbursement with a prescription from a physician.
Benefits of a Dependent Day Care FSA
bullet FSA dollars can pay day care expenses for a child under 13 while the employee and spouse (if married) are working.
bullet FSA dollars can also pay for care of a legal dependent over the age of 13 who is incapable of self-care.

bullet If a dependent day care FSA is also offered through your spouse's employer, your combined elections cannot exceed $5,000.

The Transportation Fringe Benefit Plan is a tax-free (federal and most states) reimbursement account specifically for commuting expenses to and from work. Internal Revenue Code (IRC) section 132(f) allows for reimbursement for eligible transportation and/or parking expenses. These accounts are not available for expenses incurred by family members. Employees can set aside up to $255 per month for mass transit and $255 per month for parking (2016 limits) on a pre-tax basis.

Mass Transit
bullet All mass transit operators qualify, from MTA in New York to BART in San Francisco, and every system in between!
bullet Employees can also use this account for reimbursement of expenses for commuter highway and van pooling or private bus lines.
Parking
bullet Eligible expenses incurred to park a vehicle at or near the employer's location are reimbursable.
bullet Employees may also claim reimbursement for expenses incurred to park their vehicle at or near a location from which they travel to work by mass transit (park and ride).
bullet Parking at or near an employee's home does not qualify for reimbursement.

 

         

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