TOOLS

How much should I put in my flexible spending account?

This calculator will estimate your 2005 tax savings if you use your employer’s flexible spending plan to pay for medical and/or dependent care expenses. "Flex plans" let you set aside a portion of your salary before taxes to pay for dependent care costs and medical expenses not covered by insurance. Once you pay for the expense, you are reimbursed by your plan. Some plans let employees use debit cards to pay qulaifying expenses, reducing the paperwork hassle (contact your human resources department or plan administrator for details). There's one drawback to flex plans, though. If you don't use all the money in your account by the end of the plan year, you lose it. You could still come out ahead if you save more in taxes than you forfeit at year's end. You don't want to lose a dime, of course, but to encourage you to take full advantage of the tax benefit -- and not forfeit tax breaks by putting in too little -- we'll even show you the minimum you'd need to spend to come out ahead.