Flexible Spending Accounts: 

 

A Section 125 Plan (also referred to as a Cafeteria Plan, or Flexible Spending Account) allows you to pay for certain expenses with pre-tax dollars.  This includes expenses incurred for yourself, your spouse, and any dependents.

 

 The following is a brief summary of the benefits provided by the Plan:

 

 1.   Medical Insurance Premiums:  Any contribution toward the cost of your Medical Insurance program being deducted from your pay can be done so in a pre-tax manner.  This will result in tremendous savings to you.

 2.   Health Care Reimbursement:  Any out-of-pocket medical, dental, hearing, vision care and prescription expenses can be paid for with pre-tax dollars.  This results in a minimum savings of 25% on all of your family's uninsured medical expenses.   

 3.   Dependent Day Care: Expenses you incur for a qualifying dependent needing day care may also be paid for using pre-tax dollars, with a maximum of $5,000 per family.  This could mean significant tax savings in comparison to the individual tax credit.

 

For more detailed information about this plan please see our brochure: ABS-Brochure-2008.pdf  

 

 If you have any questions about Flexible Spending Accounts please contact our office at: (610)370-3345 or   1-800-631-2828, or e-mail us at info@alternative-benefit.com and a representative will assist you.