FSAs allow employees to pay for certain medical expenses and/or childcare costs on a pre-tax basis. FSAs are one of the best tax breaks available. When you reduce your tax liability, you increase your disposable income.

An FSA requires employees to set aside a portion of each paycheck into their FSA accounts. Following payment for a medical expense (not covered by health insurance) or a childcare expense, employees submit a copy of their receipts to the FSA provider for reimbursement.

Employees fund FSAs on a calendar year basis. IRS rules limit the size of FSA accounts to $5,000 for medical expenses and $5,000 for childcare reimbursement.

Eligibility
Newly hired employees must enroll within 30 days of their hire date. Incumbent employees may enroll within 30 days of a change in family status. There are no other circumstances under which an employee may enroll after the start of the calendar year.

"Use-it-or-Lose-it"
When establishing an FSA, it is important to underestimate how much your health care or child care expenses will be in the coming year. Base your decision on the costs that you will actually incur. These include prescription drugs, non-cosmetic dental expenses, office co-pays, etc. You may track your account balance at www.tasconline.com.