The Meredith Corporation, famous for its magazines, employs about 1,000 people in Des Moines, but only one third of them have enrolled in what are called flexible spending accounts or "FSA's". "It is such a simple program and it makes so much sense to take advantage of it." said Meredith Vice President of Corporate Communications Art Slusark.

Slusark said he has tried for years to get his co-workers to open FSA's. He calls it "a no-brainer" decision to stash away your income before the IRS can get a hold of it... then spend the money on medical care you already plan to buy. A list of eligible and ineligible items can be found at www.irs.gov. The money is good for both big ticket items and small purchases. You can use it for doctor visit co-pays, acupuncture, or for a bottle of aspirin. You could use it to buy contact lenses, or for contact lens solution. Slusark said, "If you have $100 worth of health expenses and your tax bracket is 30%, it's costing you $70. Who wouldn't want to save $30 on every $100 they spend on their medical expenses?"

Historically, the answer has been people who are afraid to lose whatever money they don't spend. It's true that any money left over after the spending time limit expires will be forfeited to your employer. But Slusark said most people underestimate medical expenses. "(Money left over) is not an issue. I've been doing it... since the mid 1980's and never had that situation." Slusark said.

Back in the 1980's, people had to fill out a bunch of forms and wait to be reimbursed. Now, it's just as simple as swiping an FSA debit card. Slusark said, "It's quick. It's easy. It's painless, and you get the savings right off the bat." Time is running out to enroll for 2010. So, talk to you employer and figure out how flexible spending can improve your bottom line. You should also look into dependent care accounts to save on child care expenses.