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The biggest advantage of the
flex plan to you is that it reduces your federal
income tax bracket and the taxes you save go
straight to your pay check – your net spendable
income increases. In other words, Uncle
Sam will take a smaller bite out of your paycheck,
and you will have more money to spend every
month. You can elect flex “pre-tax”
dollars to pay for a great many health care
and insurance benefits. For example, you may
pay the “deductible” amount of your medical
coverage, plus dental, vision, hearing and other
eligible expenses with “pre-tax” dollars. See
the list of “Examples of Eligible Medical Care
Expenses” that you can deduct from your salary
– before taxes are calculated. This program
is a “tax-break” for you, sponsored by your
employer and allowed under Section 125 of the
IRS code.
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