Section 125 Administrative

Flexible Spending Account

A Flexible Spending Account (FSA) is a pre-tax benefit that offers employees the opportunity to set aside pre-tax dollars to apply toward non-reimbursed medical, dental and dependent care expenses (as outlined under Internal Revenue Code Section 125). Deductibles, co-payments and non-covered services are some of the items that qualify for an FSA reimbursement.

Additionally an FSA offers a means of saving tax dollars while enjoying the benefit of being reimbursed for otherwise non-covered expenses. Employees receive an increased take home pay as FSA deductions are taken from the paycheck prior to taxation; so for tax purposes the take-home pay has been reduced, resulting in an increased take home amount.

Reimbursement requests through Section 125 flexible spending plans can be submitted directly to 3PAdministrators for approval and payment. Claims are verified for eligibility and account balances are monitored, relieving employers of the administrative burden associated with this benefit. 3PAdministrators’ staff members responsible for Section 125 plans participate in on-going training to keep abreast of changes to the laws that govern this benefit.

Click here to learn more about 3PA's Flexible Spending Account Administration