FLEXIBLE SPENDING ACCOUNTS

A flexible spending account (FSA) is an employee benefit program that allows the beneficiary to set aside part of their earnings, tax-free, into an account specifically designed to pay for health or dependent care costs. The point of an FSA is to save the employee money on such expenses by eliminating a portion of the taxes that would normally be deducted from a paycheck.

There are three types of FSAs, all with specific purposes and requirements:

Flexible Spending Accounts are employer-sponsored benefits that can help employees cover the costs of medical and dependent care expenses. Employees can save quite a bit of money on these particular expenditures if they deposit part of their gross earnings into an FSA.

If you anticipate incurring a lot of medical expenses in the next year, or must care for a dependent, the benefits of a dependent care or health FSA far outweigh the costs. Even so, if you are eligible to hold a flexible spending account, be sure to consider both the advantages and disadvantages to determine whether an FSA is right for you.

There are quite a few financial deadlines to remember over the course of 12 months and it’s probable you’ve missed one or two in the past. Are you familiar with the sense of panic that accompanies waking up on April 15th and realizing you haven’t started your taxes? Did you forget to max out your retirement account contributions last year? If you need some assistance remembering all your important 2011 budget and planning dates, here’s a quarterly calendar to keep you on track.

Q1 2011 (January-March)

Flexible Spending Accounts can save you a large amount of money. If you pay a lot in medical expenses every year that aren’t covered by your insurance, or if you must pay to have a dependent cared for, a health FSA or dependent care FSA may be worth considering.

With your new child, you’ll be taking on new responsibilities – and new expenses. One way Uncle Sam can help you meet those new expenses is through your tax-free employer-sponsored flexible spending account. Many employers offer this benefit, also sometimes called a reimbursement account, for medical or child care expenses.

A dependent-care flexible spending account (also called a flex account) allows you to put aside money from your salary during each pay period to help pay for eligible expenses related to child care, such as day care which allows you or your spouse go to work, look for work, or attend school as a full time student. The cap is $5000, whether you are a single head of household or if file jointly as a married couple. You use the account to reimburse yourself for qualified expenses as they come up. Here’s how it works:

Solera National Bank is offer a savings account rate at 3.00% APY on their Traditional Savings Account. This is one of the best savings account rates available to consumers. Although the rate is very appealing – the features can be a bit unattractive if you don’t plan on using the account actively. However, since the minimum required deposit is low – only $50 to open the savings account and the rate is competitive, makes this a savings account to consider.

The features for the Traditional Savings Account are:

If you’re looking for a savings account with competitive rates, Bank of Internet is offering their Advantage Savings Account at 2.50% APY. This is a savings account that give you the flexibility of bill payment services and higher than average savings account rates. To open the account there is a minimum initial balance of $100.

Some great perks on the savings account are:

Company benefit plans are constantly evolving in many ways to entice the best employees to join a company while saving the business money in the process. One cost efficient strategy that does the trick are flex funds that can be utilized by employees to cover additional health expenses not covered by employee health insurance. With a flexible savings account, (aka flex funds) pre-tax funds are put aside into an account that can be used to pay of a bunch of medical costs such as deductibles, co-payments, cold treatments, and even vitamins.

Those considering opting into their employers’ flexible savings account should be aware that money that is not applied towards qualifying expenses during the course of a year is forfeited. However, with some careful planning, budget skills, and constant account management, a flexible savings account can help save you money.

A tax break is a welcome addition for anyone looking for ways to save money, which is why some people opt to take advantage of healthcare flex accounts. By making contributions to an account, you have the opportunity to set money aside for various health-related expenses and save on your taxes simultaneously.

What are Healthcare Flex Accounts?

Everybody knows that it’s important to save money, but by and large, most of us have a hard time doing it. Life just costs a lot you have your rent and mortgage, college tuition, car payments, cell phone bills, credit card bills, and even plain old grocery shopping. But as hard as it is, it’s still in our best interests to set aside money for any emergency that might arise. Governments and municipalities do just that all the time, in the form of a contingency fund. A contingency fund is expressly created to be used in emergencies, such as a natural disaster. In the world of high finance, a contingency fund is set aside in order to protect against big losses. But contingency funds are not just the province of governments and corporations – individuals can set up contingency funds too.

When a government creates a contingency fund, it is money to be used in case of dire emergency, like a serious flood, or devastating fires. The money can only be accessed if circumstances meet the conditions laid out at the time the contingency fund is created. However, many governments will draw on their contingency fund if revenue sources dry up and the government is in danger of going broke.