Legal Definitions - flexdollars

Flexdollars refer to a specific amount of money an employer provides to an employee, which the employee can then allocate towards a selection of available benefits options offered by the company.

Here are some examples to illustrate how flexdollars work:

• Example 1: Customizing Health Coverage

  Sarah works for a tech company that offers flexdollars as part of her compensation package. Instead of a standard health insurance plan, Sarah receives a set amount of flexdollars. She uses these funds to choose a health insurance plan with a lower deductible that better suits her family's medical needs, and she allocates the remaining flexdollars to a Health Savings Account (HSA) to cover future medical expenses. This illustrates how Sarah applies the employer-provided money to select and customize her health-related benefits.

• Example 2: Enhancing Work-Life Balance

  Mark is an employee at a marketing firm that provides flexdollars. He already has adequate health insurance through his spouse's plan, so he decides to use his flexdollars differently. Mark allocates a portion of his flexdollars to purchase an additional week of paid vacation time, allowing him to take a longer trip with his family. He uses the rest of his flexdollars to contribute to a Dependent Care Flexible Spending Account (DCFSA) to help cover his child's daycare costs. This demonstrates how Mark uses the employer-provided funds to choose benefits that support his work-life balance and family care needs.

• Example 3: Investing in Personal and Professional Growth

  Anya works for a non-profit organization that has recently introduced a flexdollars program. Anya is passionate about professional development and wellness. She uses a portion of her flexdollars to enroll in an online certification course relevant to her career growth that isn't fully covered by the organization's standard training budget. She then allocates the remaining flexdollars to reimburse her gym membership fees, promoting her physical well-being. This shows how Anya applies the employer-given money to diverse benefits, including professional advancement and personal wellness.