How to Take Full Advantage of Your ABS Flexible Benefit Plan
How to get money spent on health-related expenses back into your pocket
A flexible benefit plan is only offered through payroll deduction. You’re allowed to set aside dollars from your paycheck into your own flexible benefit account. Money deposited into your flexible benefit account is untaxed as it was deducted from your paycheck before Uncle Sam could tax it. You can now repay yourself from this account for money spent on out-of-pocket medical and dependent care expenses.
Think of it this way:
Money you spend on Doctor office co-pays, prescription co-pays, daycare and non-covered health-related expenses is money you’ll never see again… it’s spent… gone forever. Now, by participating in a flexible benefit plan like a Health Care Reimbursement (HCR) or Dependent Care Reimbursement (DCR), you get that spent money back… untaxed within the limits of your plan.
Here’s the bottom-line… you’re receiving a discount on medical and dependent care expenses, compliments of the IRS. This is Uncle Sam’s way of helping you stretch your dollars.
Read more: Participating in an ABS Flexible Benefit Plan is as simple as 1-2-3! >
Key IRS Rule To Play By >
Examples of Eligible Expenses >