The Health Care and Dependent Care flexible spending accounts (FSAs) are a great way to save money on taxes. Credits and/or pre-tax money from your wages is deposited monthly into a spending account. Deposits to these accounts avoid all Federal, State, Local and Social Security/Medicare taxes. When you incur qualified expenses, you file for reimbursement from the account. Once you are reimbursed, you have paid your expenses with tax-free money.
You are eligible to enroll when you are hired and become benefit eligible, and during an annual benefits open enrollment period. You can only make a change (or enroll in) a spending account(s) outside of these times if you have a qualifying event.
Forms (Benefits Forms Web Site)