Marketplace

What is FSAFlex?

Increased flexibility for both employers and employees FSAs, including dependent care flexible spending accounts (DCFSAs) and limited purpose flexible spending accounts (LPFSAs), transit/parking accounts (TFSA) allow the account holder to set aside pre-tax money to pay for eligible expenses including healthcare, dependent care costs, or transit/parking expenses throughout the year. Employees voluntarily establish an annual election for each account type.

FSA features include:
Funds can be used for a variety of medical, dental, vision, and dependent care expenses, depending on the type of FSA
FSAs may be designed to offer pre-tax transit and parking accounts
Because FSAs are funded with pre-tax dollars, they reduce employees income taxes
Employers can contribute to employee FSAs if they choose

Advantages for Employers:
Employers may contribute to FSAs, and contributions are tax-deductible for the employer
Employers save FICA (6.2%) and Medicare (1.45%) matching taxes on the value of pretax contributions made by employees
Employers received the accolades of offering a solution to employees for out-of-pocket medical expenses not covered by the group benefit plans

Advantages for Employees:
Contributions that employers make are excluded from employees' gross income
Employees have a virtual healthcare line of credit, that can be advanced as the employee participant requires to maintain good healthcare outcomes for themselves or their family members
The IIAS approved debit card eliminates submitting paper claims
The FSA saves the employee 25 – 30% on all eligible healthcare expenses
The FSA offers a full smartphone app and web portal to manage healthcare events