Flexible Spending Accounts: Employee
Whether you’re a single person, part of a dual-income household, or a family person with a non-working spouse, a Flexible Spending Account will provide you with additional benefits and more take-home pay.
As an example, the single employee earns $21,600. She uses the flex plan to pay the premiums for medical coverage and to pay for medical deductibles and dental care this year. This way, she increases her take home pay by $384 this year. That’s additional take home pay she can use for herself.
This husband and wife both work. They have two children. He makes $25,000 and she earns $35,000 per year. They use the flex plan to help pay the premium for dependent medical coverage and orthodontist bills for the children. With both of them working, they also utilize the plan to pay for necessary childcare expenses. This couple increases their monthly take home pay by $189 or $2,268 this year. That gives them additional money for the emergency expenses every family has and allows them to set some money aside to fund an additional retirement plan.
Family Person with Non-Working Spouse
With grown children, and only one spouse working, this couple has no child-care expenses. The annual salary of the working spouse is $45,000. They use the flex plan to pay the premium dependent medical coverage, meet their medical deductibles, and pay dental expenses. The flex plan gives this couple an additional $56 monthly take home pay, or $672 this year, a nice raise for the family budget.