Flexible Spending Accounts are a great way to reduce your taxable income, which helps to lower the taxes you pay at the end of the year. Sysco offers three different Flexible Spending Accounts (FSAs).
Many people shy away from FSAs because they are unsure of how much money to put into the account. The amount of money is even more important because any funds not used are lost at the end of the year, therefore it is a “use it or lose it” model. So the best approach, especially in the first years of usage, is to start cautiously.
There are three kinds of FSAs—Health Care, Limited Use and Dependent Care.
The Health Care FSA is used to reimburse you for eligible medical, dental and vision care for yourself, your spouse and your dependent child(ren).
The Limited Use FSA is only available to associates who are enrolled in the HSA medical plan. Due to IRS rules, the money set aside in this account can only be used for dental and vision costs. The Health Savings Account (HSA) attached to your HSA medical plan can be used for your medical expenses.
The Dependent Care FSA is used to reimburse you for day care or day camp for children under the age of 13, care for tax-dependent elders or other expenses you pay, so you and your spouse can work.