What Is a Cafeteria Medical Spending Plan?

This account allows you to plan ahead and set aside tax-free dollars to pay expenses not paid completely or not covered by your health insurance plan. These expenses include but are not limited to:

• Office Visit and Prescription Copays
• Deductibles
• Eyewear
• Dental Care

Complete list of eligible expenses

When you participate in a Cafeteria Plan you should decide beforehand what your expected healthcare expenses will be for the upcoming year. You need to ask yourself, "Will I be buying new glasses or contact lenses?"," Does one of my children need braces?", or "Do I expect to any other non-covered healthcare expense?".

What Is a Cafeteria Dependent Care Plan?

This account allows you to pay for child or elder care expenses with tax-free dollars. These expenses must be incurred while you are either employed on a full-time basis or as a full-time student, and must be for the care of a legal dependent who resides in your home for more than eight hours a day. If you are married and file taxes on a single basis, you may contribute up to $2,500.00 per year. If you file jointly or single you may contribute up to $5,000.00 annually

Why Do I Need A Cafeteria Plan?

On your federal Income tax form you can deduct medical and dependent care expenses, but you must exceed 7.5% of your adjusted gross income to do so. With a Cafeteria Plan, you save taxes on all qualifying medical expenses immediately because all expenses are paid for with pre-tax dollars.