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What are they: Flexible Spending Accounts (FSAs) are gaining speed around the track in efforts to reduce the cost of health care for both the employee and the employer. The driving force behind these plans is the tax savings for participants with increased spendable income, while the employer reaps the benefits of reduced payroll taxes.
Before an employer can see the checkered flag of success with an FSA, a pit stop with proper education is necessary to make the engine run smoothly. Infinisource, Inc. is ready for the green flag with enrollment meetings that can provide both the employer and the employee with the advantages of an FSA. Before the wheels of the FSA plan begin to turn, the mechanics must be explained. These include:
- Out-of-pocket medical expenses reduce costs when deducted pretax
- Accurate estimations of annual expenses reduce risk and put money back in your pocket
- FSA participants make better consumers
- Many over-the-counter (OTC) medications are allowed as pretax expenses
- Some participants may reap the added benefits of additional time to use FSA dollars following a ruling which allows (up to) an additional 2 ½ month grace period
- Allowing an FSA may cushion higher health care costs
- Rulings clarify which expenses are eligible for tax deferment
- Final guidance was issued by the IRS on debit card substantiation requirements
How can we help employers and employees be winners: Infinisource races to the finish line with proper compliance on complicated federal regulations and educates participants on how an FSA works in conjunction with other benefits plans to save tax dollars. It allows participants to earmark money for certain expenses – like deductibles, co-payments and dependent care. The enrollment meetings review requirements for participants, which include proper documentation for FSA purchases.
Infinisource offers the following types of Section 125 Plans:
- Health Flexible Spending Account (FSA) – Covers eligible health care expenses that are not reimbursed by the medical, dental or vision care plans that participants and their families already have
- Dependent Care Assistance Plan (DCAP) – Covers eligible dependent care expenses incurred to allow the participant, or if married, the participant and spouse to work or attend school full-time (i.e. child care expenses)
- Premium Conversion Plan – Allows the employee contribution to employer-sponsored benefit plans to be made with pre-tax dollars, which automatically increases spendable income
How to obtain information: Contact a sales representative at 800-779-6384 to find out how to get into the winners circle with an FSA plan and enrollment meetings that provide understanding and education about these tax-saving plans.
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