Common use of Flexible Spending Account (FSA) Clause in Contracts

Flexible Spending Account (FSA). Beginning January 1, 1991, a teacher may designate an amount per year to be placed into the teacher's Flexible Spending Account (as defined in Section 125 of the Internal Revenue Code ). The amounts in the account may be used to reimburse the teacher for uncovered medical, dental and other related expenses (as defined in Section 125 of the Internal Revenue Code) for the employee and their dependents. Amounts placed in the account are not subject to federal, state and Social Security (FICA) taxes. Reports of earnings to TRA and pension deductions will be based on gross earnings.