What Are The Tax Laws for FSAs?
The tax advantages of the Medical Reimbursement and Dependent Care FSAs are based on the law as it stands today. In the future, this law may change. If any significant change in the law takes place, you will be notified. Contributing before-tax dollars to Flexible Spending Accounts may reduce your future Social Security benefits since you contributions are not subject to FICA withholding. There is no reduction in Social Security benefits for employees who pay less than the Social Security maximum; there may be a nominal reduction in Social Security benefits. Plan Administration Flex New Mexico is administered by ASI. It is a flexible benefits program made available through Section 125 of the Internal Revenue Service (IRS) code. The program rules are governed by the IRS.
