Monitor your flexible spending accounts.
Flexible spending accounts (aka flex plans) are fringe benefits which many employers offer that enable employees to have a portion of their compensation withheld and placed into a special account to be used to pay child care or medical bills while avoiding income and Social Security taxes.
It is important to keep track of your account balance since any unused account balances are forfeited (the so-called “use it or lose it” rule). You must decide at the beginning of the year how much to contribute to the plan and spend down the balance accordingly.
With year-end approaching, ask your employer if it has adopted an IRS permitted grace period that extends the spend-down deadline for 2016 contributions to March 15, 2017. If not, you can always make last-minute trips to the dentist, therapist or pharmacy to exhaust the funds in your account.
When it comes to serving your accounting needs, no one has more experience than our team at DSJ. Call us today at 516.541.6549 or email us at to set up an appointment. We look forward to working with you!