Flexible Benefits: Let's Be Flexible


Flexible spending accounts, used most commonly for health care and dependent care, allow employees to open tax-deferred savings accounts to meet health care expe

nses not covered by insurance plans or to pay a day care center, for example. However, these accounts must be spent by yearend or the money is forfeited.

Average contribution from participating employees for

Health care . . . . . . . . . . . . $744

Dependent care . . . . . . . $2,848

Average savings forfeited at year end . . . . . $136

Employers offering flexible health care accounts reporting forfeitures . . . . . . 91%




 

©1998 AICPA

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