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A tax advantaged financial account that can be set up through a cafeteria plan of an employer. An FSA allows an employee to set aside a portion of his or her earnings to pay for qualified expenses as established in the cafeteria plan, most commonly for medical expenses but often for dependent care or other expenses. Money deducted from an employee’s pay into an FSA is not subject to payroll taxes, resulting in substantial payroll tax savings.
A voluntary retirement plan offered to employees of a company that allows up to a certain percentage of their pretax pay to be set aside and invested within the retirement plan. The percentage varies from company to company and can increase each year. The employer can also contribute to the employees plan if they wish. The funds and the growth are not taxed until the funds are withdrawn. There are restrictions as to when and how you can withdraw these funds without penalties.
A 403b plan is a retirement plan for University, civil government, and not-for-profit employees. It has the same characteristics and benefits of a 401k. |
