Flexible spending accounts (also called cafeteria plans) can be a great way for both employees and employers to decrease their taxable income. Flexible spending accounts allow employees to elect a certain amount of money for medical or day care expenses for the year to be pulled out of their check before taxes. This money can then be reimbursed to the employee as medical or day care expenses are incurred.

Flexible spending accounts are “use it or lose it” plans, meaning that if you elect $2,000 over the course of the year and only turn in receipts for reimbursement for $1,900, the $100 will no longer be available after the end of the year.

Both qualified medical expenses and day care expenses can be reimbursed through the flexible spending account. Here is a list of medical expenses that qualify for reimbursement under a flexible spending account. Sample Flexible Spending Expenses.pdf

These rules are similar to those for HSAs discussed in a previous blog.

All full-time employees (those working at least 30 hours a week) of A Plus Benefits are eligible to participate in our flexible spending account. Signing up for the flexible spending account must occur at the time of benefits enrollment or during open enrollment in December. Flexible spending elections do not roll over year to year so new elections must be turned in by December 31^st of each year.

If you would like more information about the A Plus Benefits flexible spending account, please contact the benefits department.

Samantha Bushard is an HR employee for the Idaho office of A Plus Benefits, Inc.