Farmington Hills 248-626-2400 or Grand Blanc 810-694-0336

Consult your CPA about ways to save money.

Does your employer offer an FSA or cafeteria plan for medical expenses not covered by insurance?

FSAs let employees pay some health-care expenses with pre-tax compensation dollars.

The tax savings can be substantial. FSAs may cover much more than you’d suspect, including expenses a medical insurance plan would not think of covering, such as non-prescription drugs or fertility enhancement. Prepaid orthodontist bills can be reimbursed up front from flex plans; workers can use remaining funds to pay dependent care costs that arise after they leave their job; and members without health

insurance can buy it out of their flex plans. Amounts in flex plans unused at year-end are forfeited, except that some plans give a 2½ month period after the end of the calendar year to use up contributions. If you or your spouse has a dependent-care flex account, and the employer prevents that spouse from making additional contributions (e.g., so as not to violate nondiscrimination rules), the other can start funding a flex plan. If both have flex plans and the total in their accounts at year-end may exceed the $5,000 annual cap, one spouse can stop the funding. If you use a flex plan for dependent-care costs for a disabled child, you might still be able to claim a credit for expenses that exceed the amount in your FSA. The credit applies to up to $6,000 of eligible expenses for filers with two or more kids under age 13.

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