Time is running out to use your Flexible Spending Accounts for 2009.

FSAs are part of tax-advantaged plans offered to employers in the United States. They are part of a plan called “cafeteria plans”. Flexible Spending Accounts allow employees to open a savings-type account, which a portion of their paycheck automatically goes into every month. The amount remains the same every month under most circumstances. Medical services and other pre-approved benefits can be paid for out of this account without a payroll tax being deducted from the amount.

There is a major drawback to the FSA. At the end of the plan year the employer loses all of the money that they did not utilize.

The plan year is most likely the same as the calendar year. The plan administrator receives all funds that are unused at the end of this period. The “use it or lose it” time period is upon us. Contact our New Jersey Cosmetic Dentist office, Mount Holly Family Dentistry today.