Flexible Spending Accounts

The Flexible Spending is a section 125 plan classified as a "cafeteria" plan by the IRS.

Available benefits through the plan:

Insurance benefits: you may purchase the coverage for yourself and your family through the cafeteria plan with pretax dollars.

Spending accounts: you can set aside pretax dollars to reimburse yourself on a pretax basis for payment of certain medical and/or dependent care expenses, not to include insurance premiums.


What is the purpose of this cafeteria plan?

To give you a choice between

  1. direct taxable compensation
  2. tax-favored benefits under the employer sponsored group health insurance plans and the medical care flexible spending account plan

How does the plan work?

By completing a Cafeteria Plan Election Form which will be provided to you, you direct your salary reduction to be used to pay for group health insurance premiums or FSA contributions.

Will a cafeteria plan save me money?

Yes, through a reduction in federal, FICA and possibly state taxes.