Flexible Spending Accounts for Transport Employees
Flexible Spending Accounts (FSAs) are beneficial for managing healthcare and dependent care expenses. Here's how FSAs work for our transportation employees:
What is an FSA?
An FSA allows employees to contribute pre-tax earnings to cover eligible medical and dependent care expenses.
Types of FSAs:
- Healthcare FSA: Covers medical expenses not covered by insurance.
- Dependent Care FSA: Covers expenses for dependent care, such as daycare.
Benefits of FSAs:
- Tax Savings: Reduces taxable income, lowering income taxes.
- Cost Savings: Helps manage out-of-pocket expenses.
How to Use an FSA:
- Enrollment: Elect to contribute during open enrollment.
- Contribution Limits: Follow IRS guidelines for annual contributions.
- Expense Reimbursement: Submit eligible expenses for reimbursement.
- Keep Records: Maintain records for compliance.
- Plan Carefully: Avoid forfeiting unused funds at year-end.
FSAs provide financial relief for transportation employees, enhancing both personal and family well-being.