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r <br />OVERVIEW <br />Even if your employees participate in an HMO, they all will <br />undoubtedly incur some health care expenses which they will have <br />to pay themselves --expenses like premiums, deductibles, co - <br />payments, eyeglasses, braces, or hearing aids. If the expenses <br />amount to more than S% of their gross income is any year, of <br />course, they can begin to deduct them. Now nice it would be, <br />however, if they could deduct all of them. Now, they caul Row? <br />Through an employer -sponsored Flexible Spending Account (FSA). <br />FSA's allow employees to set aside money in even amounts out of <br />each paycheck on a pre -income tax oasis to cover these kinds of <br />expenses. Whenever the employee incurs such an expense, he/she <br />simply pays it, then submits a request to the plan administrator <br />for reimbursement out of his/her pre -income tax account. <br />Because of the tax advantages of the program, the IRS does <br />require some restrictions. Elections of payroll deduction <br />contribution amounts must be made before the start of the year, <br />and, with one minor exception, cannot be changed or discontinued <br />for the entire year. Also, money left over in the account at the <br />end of the year must be forfeited and cannot be paid back to the <br />employee. <br />FSA's ire not funded. Rather, contributions directed to the plan <br />by employees through payroll deductions arc held land used) by <br />the employer until such time as a reimbursement check is <br />