Flexible Spending Accounts

If you are a Maxon Flexible Spending Account Client click the following links for Access to your Account.


What are Flexible Spending Accounts?

Flexible spending accounts are a tax-advantaged way to pay for qualified out-of-pocket health care expenses, and work-related day care expenses. This benefit allows you to pay your expenses with “pre-tax” dollars, which means you get a tax deduction for these expenses before you ever file your tax return. As you incur health care expenses or dependent day care expenses throughout the year, you submit a claim for those expenses and are reimbursed with tax-free dollars from your account.

The Health Care Account reimburses you for out-of-pocket health care expenses for medical, dental, vision, hearing and pharmaceutical expenses. The Dependent Care Account reimburses you for dependent day care expenses you incur in order to allow you and, if married, your spouse to work. When you use these accounts, you reduce your taxable income, so you will pay less in income taxes.

How the Accounts Work

  • You estimate the amount you will spend on out-of-pocket health care expenses and/or day care expenses during the year. Estimate conservatively, and review last year’s expenses to help you determine what to anticipate for this year. Plan only for predictable expenses.

  • You decide how much you wish to set aside into your Health Care Account and/or your Dependent Care Account. Then, complete the necessary enrollment forms provided by your employer.

  • The amounts you wish to set aside into your accounts will come out of your paycheck in equal amounts on a schedule established by your employer.

  • As you incur health care or day care expenses throughout the year, you submit a claim form along with documentation of your expenses. Reimbursements from your accounts are made on a schedule determined by your employer, and you may file claims as often as you wish.

  • Reimbursements are made by check sent to your home address.

  • If your employer has enabled debit card administration, you simply swipe your card at eligible retailers, for example pharmacies or doctors’ offices.

  • Any account balance that is not used by the claims filing deadline will be forfeited. You can avoid forfeitures if you plan carefully (review last year’s expenses to estimate what you will have this year.)

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