Flexible Spending Accounts
What is a Flex Plan?
Flexible Spending Accounts (FSA) also known as Section 125 Plans, Cafeteria Plans or simply Flex Plans, are one of the most dramatic developments in employee benefit plan design to be implemented by Employers.
With a Flex Plan, an employer arranges for the establishment of individual employee accounts of pre-tax dollars. Employees decide on the amount of money they wish to contribute to the account, and that amount is taken out of their pay on a pre-tax basis. Employees utilize this account throughout the year, as needed, to cover a variety of eligible expenses not covered by benefit plans, such as:
- Out of pocket medical expenses
- Group life and health premiums
- Dependent care assistance
Payroll deductions for Flex Plan Contributions are not subject to Federal Taxes, Social Security or Medicare, and State Taxes. This allows employees to pay for expenses they already have with tax free dollars.
Plan Administration Services
- Plan Design
- Summary Plan Description
- On-Site Enrollments
- Enrollment and Educational Materials
- Eligibility records
- Account Reporting to Employees
- Flex Plan claim processing
- Employer Reporting
- Assistance with the generation of information required each year by the IRS and Department of Labor
- Allow our Benefit Specialists to guide help you stay abreast of the ever changing regulations that affect your HSA, FSA or HRA plans.