Open enrollment is the time to enroll or re-enroll in dependent care and/or health flexible spending accounts (FSAs). Consider enrolling if you expect your 2011 out-of-pocket expenses to be between $180 and $5,000. You must re-enroll during open enrollment if you wish to participate in 2011.

Effective Jan. 1, 2011, over-the-counter medicines without a prescription are not eligible for health FSA reimbursement.

FSAs offer:

• a planned approach to paying expenses — you set aside money that you will have to pay anyway in a pre-tax account that can be used to cover eligible expenses.
• affordable pre-tax contributions — you contribute an equal portion of the total annual amount to your account by pretax deductions each month.
• tax savings — because your deductions are taken before taxes, your tax liability is reduced.

The health FSA also has the convenience of a benefit card that you can use for qualified expenses at participating providers' offices, drug stores and most pharmacies where credit cards are accepted. With the card, you won't have to pay out-of-pocket and then file reimbursement claim forms. (Be sure, however, to always save your receipts in the event of future requests by the FSA vendor or the IRS to verify that the purchase is valid.)

Consider enrollment carefully because any money you do not claim by April 15, 2012, will be lost. Before you enroll, make sure you understand the “use it or lose it” rules and the paperwork requirements needed to validate your reimbursements.

To learn more or enroll in a flexible spending account, visit the Open Enrollment website.