Highlights

Announcement - Notice Regarding Use of PayFlex Debit Card

Flexible spending accounts let you pay certain health and dependent care expenses with tax-free dollars. Because you don't pay taxes on these dollars, they buy more services - and the services actually cost you less.

Through payroll deductions, Flexible Spending Accounts work somewhat like a personal bank account. You can set aside money to cover eligible health care and dependent care expenses. The money comes out of each paycheck - before taxes - and is deposited in a special account. Although Flexible Spending Accounts do not pay interest on your money, you can withdraw money from the account to reimburse yourself for eligible expenses.

WHAT ARE MY OPTIONS?

Vought Aircraft offers two types of Flexible Spending Accounts:

The Health Care Flexible Spending Account helps you save money on your out-of-pocket medical, dental, vision and hearing expenses
The Dependent Care Flexible Spending Account helps reduce the after-tax cost of your dependent care expenses. See the following descriptions of each account.

You can enroll in one or both accounts when you are hired, within 31 days of a qualified change in status, or during the Annual Enrollment period. You also can choose to not participate.

A WORD OF CAUTION... PLAN YOUR EXPENSES

Before you enroll in a Flexible Spending Account, you should carefully estimate your health care and dependent care expenses for the year. Your estimates are important because in exchange for the tax savings you receive, the Internal Revenue Service places several restrictions on the money you contribute.

This chapter includes tips to help you estimate your expenses. If you plan ahead, you can save money on eligible expenses through the before-tax feature of Flexible Spending Accounts.