Flexible Spending Plan Saves Money for Members: A while ago the BTU negotiated with the city on a pre-tax benefit called the Flexible Spending Plan. Simply, the plan allows each member to set aside paycheck dollars to be used for out-of-pocket medical, dependent care, and transportation expenses. Following is an excerpt from a recent city announcement, which is timely, inasmuch as the open enrollment period (October 21 to November 22) is upon us. The BTU will hold an Open Enrollment session on Thursday, November 7 from 2:30 to 4 PM.
Flexible Spending Accounts and Pre-tax Transportation plans are a tremendous opportunity for you to enhance your benefits package. The City of Boston knows that these are highly beneficial programs and wants you to have the opportunity to participate in an IRS Section 125/Flexible Spending Account and/or and IRS Section 132/Transportation Plan administrated by Cafeteria Plan Advisors, Inc. (CPA, Inc.) for the plan year of January 1 to December 31, 2014.
Most employees pay for expenses such as dependent care, medical/dental, work-related parking fees and mass transit on an after-tax basis. These programs allow you to set aside a portion of your paycheck tax-free to pay for those expenses. The result is a reduction in your taxable income, which will give you an increase in your take home pay. Don’t miss out on this opportunity to save between 28-34% in taxes.