What is a Flex Account?
A Flex Account is a special employee benefit. From this unique Account you can pay for things you are already buying…before you pay taxes. Eligible expenses include Health Care expenses (like prescription copays) and Work-Related Child Care. Upon eligibility, and then again at the beginning of each plan year, through payroll deduction, you elect how much you want to deposit into your Flex Account for each category of expense. You then get to make withdrawals for eligible expenses…tax free!
How do Flex Plans work?
At the beginning of each plan year, you decide how much your qualifying expenses will be in the coming year. Based on this budgeting process, contributions are then made through payroll deductions into your Flex Account. These deposits are made on a tax free basis. As expenses are incurred, you may request reimbursements from your account, which are also tax free.