Save taxes - easy to sign up!

Flex Plans are short for Flexible Spending Accounts (FSAs). They are also commonly referred to as Cafeteria Plans or Section 125 Plans.

No matter what they are called ... the bottom line is these plans can help you save taxes.

Flexible-spending account are funded through employee salary reduction, with the money going to pay certain expenses, such as medical and child-care costs. The advantage is that money going through the account is tax-free.

Click here for a quick estimate of how much you can save with the Flexible Spending Plan.

Examples of eligible medical expenses include:

• Deductibles/Copayments
• Dental exam/Treatment
• Braces
• Eye exams/lasik
• Eyeglasses, contact lenses
• Over the counter medicines
• Fees for physician, diagnostic and lab
• Smoking cessation programs

Examples of eligible dependent care expenses include:

• Cost of child care center, nursery school or private sitter
• Before/after school programs
• Care of an incapacitated adult who lives with you at least eight hours a day

Here's how it works

Each year you decide how much you would like to set aside for medical expenses or day care costs. That amount will be deducted from your paycheck on a pre tax basis.

Let's say you set aside $100 a month - $1,200 a year - for unreimbursed medical expenses. That money comes out of your paycheck - pre-tax - and is put into an account set up by your District. As you incur expenes, you submit the receipt and a claim form to the Plan Administrator. After the claim is processed, you'll receive a reimbursement check for the full amount - as long as it is not over your annual election.

One thing you should know is the that any amount left in the account at year-end must be forfeited. This is commonly referred to as the "use it or lose it" rule.

There are instances where you can change the amount that you are contributing. If you get married, have a child or other "family status" changes, you are allowed to change the amount mid year.

Bottom line - whether you're a single employee or have a family - if you have eligible, predictable expenses you will save money by participating in an FSA.