Do you have dependent care expenses or qualified medical expenses that are not reimbursed by insurance? Flexible spending accounts permit you to pay for these qualified expenses with pre-tax dollars!

Flexible spending accounts are available to employees through the Section 125 plan. These options allow an employee to establish an account to reimburse certain types of expenses on a tax-exempt basis. There are two types of flexible spending accounts that may be elected:

• Medical Expense Reimbursement - reimburses qualified uninsured out-of-pocket medical expenses
• Dependent Care Expense Reimbursement - reimburses allowable dependent care expenses

The employee specifies the amount to be reduced from his/her salary for the reimbursement account. Each month, these pre-tax contributions are made to the appropriate account established in the employee's name. As qualified medical or dependent care expenses are incurred, the employee submits a voucher form for easy reimbursement.

Tax savings realized by participating in the 125 plan are enjoyed throughout the year rather than at the end of the year after you file your income taxes. You may submit dependent care or medical expense claims for reimbursement as late as 90 days after the end of the plan year during which they were incurred (see your employer for details).

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