Knowing Your Benefits: What Is A Flexible Spending Account (FSA)?

Based on our recent benefits satisfaction survey, many of you asked for more information about Flexible Spending Accounts (FSA). An FSA allows you to deduct pre-tax dollars from your paycheck and place these funds in a special account. This money is reserved for eligible health care (often out-of-pocket co-pays and coinsurance not covered by insurance) and/or dependent care expenses incurred by you, your spouse, and your dependents. These FSA accounts are exempt from federal, Social Security (FICA), and state income taxes. Depending on your tax bracket, you may save up to 30% or more in taxes! For more information about the plan, eligible expenses, or to estimate your savings, please see additional information provided by our FSA vendor, Ceridian.

You now have the opportunity to participate in the Flexible Spending Accounts by enrolling in the FSA during Open Enrollment. New enrollees and current participants wishing to continue FSA into the 2007-2008 plan year must complete a Ceridian enrollment form and submit to Human Resources in Main Building, Room 302 by May 4, 2007. Enrollment forms can also be faxed to our office at 312.567.3450. IRS regulations require participants to re-enroll for the flexible spending benefit every plan year.

If you have additional questions, please come to one of the scheduled Open Enrollment meetings or contact Human Resources at hr@iit.edu or 312.567.3318.