Looking for a better way to manage your out-of-pocket medical expenses? What about your day care expenses? Learn how a Flexible Spending Account (FSA) can help.
Five Facts about a Flexible Spending Account (FSA)
FSA's let you pay for qualified healthcare and dependent care expenses with before-tax dollars. Maybe you've been asking yourself, "Should I open a flexible spending account?" Here are five FSA facts to help you answer that question.
FSAs Save You Money
Bi-weekly payroll contributions fund your Health FSA (HFSA) or Dependent Care FSA (DFSA). Your contributions are before-tax deductions. That means you pay less in taxes and have more take home pay. Find a FSA Savings Calculator online and see how much you can save.
FSAs Let You Choose the Amount That's Right for You
One size fits all doesn't work for healthcare and dependent care expenses. That's why you can choose the FSA contribution amount that's right for you. Here are the contribution ranges:
- $200 up to $2,600 for the HFSA
- $200 up to $2,500 for the DFSA if you're married and filing separately
- $200 up to $5,000 for the DFSA if you're married and filing jointly or are a single parent
FSAs Cover More Than You Think
Your Health FSA covers more than medical co-pays, coinsurance, and deductibles. You can also use it for:
- Over the counter items, such as crutches, bandages, and blood testing kits
Dependent Care FSA dollars aren't just for childcare expenses. Your dependent care FSA allows you to pay for elder care too.
Smart Tip: Health FSA Debit Cards Eliminate Waiting for Reimbursement
For more information visit NAF Heath Plans