Why participate in a flexible spending account?
Flexible spending accounts provide an IRS blessed method to save money on certain expenses that you anticipate incurring during a year. By running your expenses through one of the FSAs, the money you set aside from each paycheck is not taxed. You apply for reimbursement of this money from your own account to pay for expenses that you would have otherwise paid with after-tax dollars. 2. How do contributions I make to the HCFSA and/or DCFSA affect my contributions and highest average salary for PERA purposes? Since contributions to your HCFSA and DCFSA reduce your taxable income, PERA contributions are not taken on the amount that you contribute to these plans, which reduces the salary that PERA uses to calculate an employee’s final highest average salary (HAS) for pension calculation purposes. Employees within three years of retiring should take this into consideration before deciding to participate. 3. How long do I have after the end of the calendar year to file for claims reimburseme
