Why no retirees Flex Spending?
To the Editor:

Why are retirees prohibited by federal law from participating in the Flexible Spending health care program?

Since this is a federal election year, I would like to know where our federal elected officials stand on extending this program to retirees. Are they even aware that retirees can’t participate?

This prohibition penalizes retirees.
ED SMITH
Ballston Lake

Editor’s Note: Flexible spending accounts are allowed under federal tax law as a means to set aside earned income before you actually receive it as pay. You can draw from the account during the calendar year to cover expenses specifically designated in the tax law, such as health care. Because you do not receive this income directly, you do not pay income taxes on it.

However, the law distinguishes between income you earn as salary or as an hourly wage versus pension income which is considered a “benefit.” The law does not allow withholding part of this benefit at a pre-tax level.

PEF is not aware of any bills or efforts in Washington to change this. PEF does not know how aware or unaware of this situation members of the U.S. House and Senate may be.



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