Using a flex account

Health Care and Dependent Care Spending Account

As an integral part of your employee benefit plan, your employer is sponsoring a Health Care Spending Account and a Dependent Care Spending Account. These accounts allow you to save taxes by paying for dependent care and medical, dental, and vision expenses with pre-tax dollars. Participation in the Health Care and Dependent Care Spending Account is strictly voluntary, but once you have made your election, your election stays fixed for the entire Plan Year unless you have a Status Change, as explained below.

The Health Care Spending Account can reimburse you for your deductibles or co-pays, dental or vision care, and other out-of-pocket health care expenses as approved by the Internal Revenue Service (see the partial list below).

The Dependent Care Spending Account is a great way to pay for childcare or dependent care expenses with pre-tax dollars thus enabling you, or you and your spouse, if you are married, to be gainfully employed. You can tax shelter any amount up to $5,000 per year for Dependent Care ($2,500 for a married individual filing a separate tax return). The primary advantage of using the Dependent Care Spending Account is that you are being reimbursed with your own pre-tax dollars, thus saving you money and taxes!