Autumn is here, which means open enrollment season is upon us. Those of you who have employer-provided benefits have been given the opportunity during this time to review your insurance program, such as health, dental and disability, and plans to switch. You can also get to change the registration of a flexible spending account
If you do not take advantage of this valuable accounts, listen up: You can save 35% or more OUT-. Before pays medical expenses and dependent care by using the FSA
FSA contribution taxes out of your paycheck – you do not have to pay taxes so that part of your income. Then, you can use it to pay for things like health-care deductibles, co-payments, dental work, child care and above (see 25 kinds of methods of money in tax-free money to hang your Flex account.)
For example, , the maximum payment of $ 5,000 to plan childcare bill, you will save nearly $ 2,000 tax (assuming a 25% federal bracket, 5% state bracket and 7.65% Social Security tax.)
Reserve funds in the FSA’s health care spending, because more and more employers require employees to pay higher deductibles and by sharing the burden of rising health insurance costs, which is particularly important for co-payments (see costs rise in employer-sponsored health care.) another reason to consider that you take full advantage of the flexible now: health care reform one of the methods have been proposed to help pay for a $ 2,000 limit slap in the face of $ 2,500 in 2010 after what you can put aside tax-free each year . Now, there is no limit written into law (although companies often levied $ 4,000 to $ 5,000 per year limit).