Employees can set aside pre-tax dollars for out-of-pocket medical/dental-related and/or dependent care expenses. The employee estimates the amount of expenses for the 1 year plan period and has a fixed amount deducted from each paycheck. The IRS limit on medical/dental expenses is $2,850/year; the limit on dependent care expenses is $5000 per family. Employees may roll-over up to $570 of the benefit into the following year’s FSA enrollment.
Cafeteria Plan Advisors administers these accounts. Contact HR for more info, or CPA at (781) 848-9848, email info@cpa125.com.