This year's open season for the Flexible Spending Account (FSA) program runs from November 14 through December 31, 2005. FSAs are an opportunity for all Mail Handlers to save money for health care and dependent care by paying for these out-of-pocket expenses with pre-tax income.

Recent IRS rules issued in May 2005 have extended the period of time you have to spend money in your FSAs from twelve months to fourteen and one-half months (next year, from January 1, 2006 through March 15, 2007). This "grace period" should remove any "use it or lose it" rush to spend all your FSA funds before December 31. (If you have FSAs for 2005, you can even use this year's FSA funds for expenses through March 15, 2006.)

If you don't have an FSA, try one next year. Start small, if you like. But you can put up to $5,000 into a Health Care FSA and/or up to another $5,000 into a Dependent Care FSA. Using the FSA Program can give you significant tax savings. In basic terms, the FSA gives you a percentage discount (depending on your tax rate) on all of your out-of-pocket health care costs, such as braces, eyeglasses, hearing aids, deductibles, copayments, drugs (including prescription and over-the-counter medication), and other expenses not covered by health insurance. The same is true for your dependent care costs, which can include day care at a center or from a private sitter, late pickup fees from child care, nursery school, and summer day camp, or adult day care for an elderly parent.

The amount of money you put into an FSA is entirely up to you. But remember, you now have additional time after December 31 of each year before any unspent money in an FSA could be lost to the Internal Revenue Service. Complete your enrollment through PostalEase at 1-877-4PS-EASE.