Medical FSA - Consider Participating

If your company has a "cafeteria plan" that allows employees to designate a portion of their wages for qualifying medical expenses (Medical FSA), we suggest you consider participating. However, keep in mind you cannot also be enrolled in a Health Savings Account (HSA). Benefit: The amounts spent on qualifying medical expenses are treated as nontaxable for Federal and State income tax and for Social Security and Medicare tax purposes. Each year you must elect how much to contribute to the plan. Since any unused amounts are forfeited it is important to reasonably estimate your uninsured medical expenses prior to making the election. Medical expenses to consider: co-pays and deductibles on doctor visits and prescriptions, medical aids such as contacts, eyeglasses, hearing aids, etc., and uninsured costs such as vision, dental, etc. that your current insurance does not cover. You should review your plan for a summary of qualifying medical expenses.