Ways Employees Benefit from a Flexible Spending Account
Were you aware that a Flexible Spending Account has a grace period and that you have extra two-and-a-half months to spend your dollars in the account? While this is great news, most employees don’t understand the deadline or what all you can buy with your flexible spending account. Keep reading below to find out more information on benefits of a flexible spending account, what is available to you, what is not and more information!
Pros of a Flexible Spending Account
By having a flexible spending account, you are able to contribute funds that are taken out of your check on a pre-tax basis. This means that the money you are contributing to this account is taken out before taxes have been withheld! This causes your income to be lowered, which in return reduces the amount of taxes you have to pay. You will also save on the cost of medical care because you are using your money pre-tax!
Health flexible spending accounts allow employees to save for medical costs throughout the entire year. This can be very helpful if you know you have a procedure towards the end of the year, or if you have an emergency situation arise. You won’t have to worry about the cost hitting you too hard, because you have been saving for this emergency situation during the entire year.
What You Can Buy
Did you know that you can purchase smartphone-enabled blood pressure monitors with your Flexible Spending Account? Or that you could buy home defibrillators? While you may not be in need of these things, there is a huge list of items that are eligible to be purchased with your flexible spending account. Be sure to check online for the most updated list of eligible items!
What You Can’t Buy
Contrary to popular belief, not all of the items at your local drug store are eligible to be bought with your flexible spending account. Common products that are not eligible are electric toothbrushes, cosmetics, fitness trackers, and weight loss items. However, you are able to purchase items like Tylenol or Advil!
If your employer offers a flexible spending account, you should definitely consider taking advantage of it. Not only will it help you with tax savings or medical savings, it will help to provide a peace of mind in case an emergency situation ever occurs.
Coastal Human Resource Group, Inc. is a Human Resource Outsourcer (HRO). We serve as a full-service human resources department for small and medium-sized businesses throughout the Southeast which provided compliance screening as well as background checks . Visit www.Coastal-HR.com or call us toll-free at 1-888-757-7444. We’re here to help ensure that all your human resources needs are met.
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