Take advantage of a flex plan at work
Many employers offer flexible spending accounts, or flex plans for short, that let you set money a side for medical or childcare expenses. The benefit of these accounts is that the money you divert from your paycheck to the flex plan is pre-tax, and when you use the money for its intended purpose, you don’t have to pay taxes on it.Maximum contribution limits apply, but the more important thing to remember is that unlike a health savings account, you risk forfeiting flex plan money if you don’t use it by the end of the year. Check with your employer for your plan’s details, but it can still be smart to use flex plans when you know that you’ll need to use the money.
