Why an FSA?
A Flexible Spending Account is an indispensable part of your overall benefits program. An FSA is an account your employer sets up so you can pay for a variety of healthcare needs, like insurance co-pays, deductibles, dental, vision, pharmacy and even some over-the-counter medication costs, reimbursed under the Health FSA. You can also use it to pay for dependent daycare expenses, reimbursed under the Dependent Care FSA. But here’s the best part: Your FSA is funded entirely by your pre-tax income. This means you can save money and offset rising healthcare costs at the same time. That’s like found money to spend on all those everyday items you and your family need!
How Do I Save Money?
Below is an example of the tax savings you could enjoy by taking advantage of an FSA.
| With an FSA | Without an FSA | |
| Annual Salary Before Taxes | 30,000 | 30,000 |
| FSA Contribution | 1,500 | 0 |
| Taxable Income | 28,500 | 30,000 |
| Less Taxes - | ||
| -Federal Income Tax (Estimate 15%) | ||
| -FICA 7.65% | -6,455 | -6,795 |
| Less Healthcare Expenses | 0 | 1,500 |
| Take-Home Pay | 22,045 | 21,705 |
| Tax Savings | 340 | 0 |
Should I sign up?
Of course, this is a question that only you can answer; however, we find that for most families, an FSA makes perfect sense; especially, if you or any member of your family has recurring medical expenses. Remember, an FSA is a perfect way to pay for eligible health and daycare expenses and save money at the same time. You should consider signing up for the FSA if you can answer yes to one or more of the following:
- Are you or a family member participating in ongoing medical treatment?
- Are you or a family member on maintenance medications?
- Do you pay for Daycare expenses?
- Is this the year you or a family member replace your glasses or contact lenses?
- Are you or a family member planning any dental procedures this year?
Instant access and no Claim Forms
You have access to your FSA account via the Benefits Card MasterCard®, provided by your employer. The Benefits Card lets you pay for eligible healthcare expenses virtually everywhere Debit MasterCard® cards are accepted. The Benefits Card makes using your FSA dollars simple and easy. The Card deducts each payment directly from your FSA account. So it’s as convenient as using an ordinary credit card. All you have to do is save receipts for all your FSA purchases in the event they are requested by your Plan Administrator. For optimal convenience, your Benefits Card offers 24/7 online access, so you can check your account balance and other vital information with a single click.
To learn more about the benefits of FSAs click on the accompanying tabs or simply contact us. Once you know the facts, you’ll discover that FSAs spell real savings for you and your family.