The Teamworks Flexible Spending Account (FSA) is a benefit plan designed as a way to help pay for medical expenses and to increase your take home pay by reducing your taxable income.
Ordinarily your out-of-pocket medical and dependent care expenses are paid with after tax dollars – that is, money you’ve already paid taxes on. These expenses can quickly add up to hundreds or even thousands of dollars each year. With a Flexible Spending Account you can set aside pre-tax dollars that you think you’ll spend for medical or dependent care expenses throughout the year which can result in significant savings from using tax free dollars.
Advantages to an FSA:
- You pay less in Federal, State and FICA taxes
- You gain more control over how your benefit dollars are spent
- You may have more disposable income
- You have a convenient way to pay for medical and dependent care expenses with tax-free dollars