How the 125 Flex Plan can save you money

With a flexible spending account, you can pay for certain insurance, health and child care expenses with pre-tax dollars. As a result, you give up less of your paycheck to taxes and those expenses end up costing you less since the money you use to pay them escapes taxation.

Here is how it works!

At the beginning of each plan year, you decide how much of your salary should be directed into your flexible spending account.

You can use can use your previous year's tax return forms and medical expense records to estimate these expenses.

Based on your estimate, the appropriate dollar amount is automatically deducted from your paycheck every pay period and deposited into your flexible spending account. The money is deducted before taxes are figured. This money is never taxed.

Each time you need to pay for an eligible expense, you submit a claim reimbursement form and the required beck up and you well be reimbursed from your account with tax free dollars.

Your account will cover:

Medical expenses not covered by your group medical benefits - deductibles, coinsurance and any expenses excluded by your medical plan.

Vision care, hearing and prescription drug expenses not covered by your health care plan.- examinations, eye glasses, contacts, hearing aids, prescription drugs, deductibles and coinsurance.

Dental Plan deductibles, coinsurance and expenses not covered or included in your dental plan.

Dependant care and child day care expenses - for day care and baby sitting, for children under the age of 13, while you are at work. You can use your flex account to pay for dependant care expenses other than child care if the individual is physically or mentally handicapped and qualifies under the Internal Revenue code.

Your portion of medical and dental premiums are already being deducted using pre-tax dollars for all STA members. No need to sign up for this specific benefit.

Contact STA if you have any questions.

A Flex Participant's Guide to Submitting Claims

IRS 125 Flex Plan Medical Reimbursement Form