Flexible Spending Accounts
Ellen: Opening a flexible spending account
Ellen, 62, put $1,200 into her flexible spending account in 2006. $100 a month was deducted from her paycheck before taxes. She used the money to pay her co-pays for prescription drugs and to buy a hearing aid. “I saved about $350. That’s the taxes I would have paid on this money.”
More tips on spending wisely.
