A more thorough explanation:

Definition: Flexdollars are a type of compensation that an employer pays to an employee. These dollars can be used by the employee to choose from a variety of employee benefits.

For example, let's say an employer offers an employee $1,000 in flexdollars. The employee can then use those dollars to choose from a variety of benefits, such as health insurance, dental insurance, or a 401(k) plan. The employee can allocate the flexdollars to the benefits that best fit their needs.

The use of flexdollars allows employees to have more control over their benefits package and tailor it to their individual needs. It also provides employers with a way to offer a variety of benefits without having to manage multiple benefit plans.