The Flexible Spending Program allows our members to set aside funds on a pre-tax basis for medical needs, day care needs and transportation (T, parking) costs. It has its annual open enrollment period coming up from 10/12 to 11/5. Hundreds of our members currently participate in this tax-advantaged program.
Dependent Care Plan: The Dependent Care FSA is a great tax savings for people who have children in daycare or parents that require elder care. The IRS allows you to set aside up to $5,000 pre-tax from your paycheck to pay for these expenses. In most instances, participation in the Dependent Care FSA results in a greater tax savings than the Dependent Care Tax Credit. (We recommend you speak with your tax advisor to determine which would provide the greatest tax benefit for you.) Some examples of eligible Dependent Care Expenses are: daycare, pre-School, before School care, after school care, and summer day camp.
The Medical Dental Care plan allows a set aside of $5,000 for out-of-pocket medical expenses – MD visits, Rx, deductibles, and so on. See here for more examples of deductibles.
Transportation Benefit Plan: The Transportation Benefit Plan allows you to set aside an amount pre-tax from your paycheck to pay for certain parking and transportation expenses subject to the following limits:
“¢ Parking Reimbursement Account: Allows you to pay for your daily or monthly parking expenses up to $230.00 per month.
“¢ Mass Transit Reimbursement Account: Allows you to pay for your mass transit expenses related to your commute to work up to $230.00 per month.
To learn more about these exciting benefits, please attend a session with a representative from Cafeteria Plan Advisors, Inc (CPA) at the informational meeting on October 14, 2010 at the Boston Teachers Union from 2:30 pm – 5:00 pm.
If you cannot make it to the meeting and would like to hear more about these benefits today, you can call Cafeteria Plan Advisors, Inc. at 1-800-544-2340 or visit their website. Or, download a form; print form dedicated to the City of Boston.
Employees Currently Participating in the Flexible Spending Accounts: An enrollment form for the new plan year will be mailed to your home address.