|
Flexible Spending Accounts (FSA) are plans that let you save taxes by lowering your taxable income on many of your common out-of-pocket health care and dependent care expenses. Because contributions to your accounts are deducted before taxes and the reimbursements you receive are not taxed, these accounts can save you significant money on these regular expenses. The federal legislation that authorizes these accounts also contains a "use it or lose it" feature. This means any money you deposit into your account that is not claimed by the end of the filing period is forfeited. Therefore, it is important that you estimate your expenses carefully.
Health Care Flexible Spending Account
The Health Care Flexible Spending Account is a plan that allows you to get an immediate tax savings on your eligible out-of-pocket health care expenses. You will be able to use your health care FSA for out of pocket medical, dental, vision and hearing expenses (refer to list of eligible expenses).
Through this plan, you can contribute to an account on a before-tax basis. You decide how much to contribute, up to a maximum limit of $2,500 per year. Your contributions are automatically deducted from your paycheck.
After you incur and pay eligible expenses, you must submit a claim along with your documentation. You will receive a tax-free reimbursement from the money in your account. The federal legislation that authorizes the Health Care Flexible Spending Account also requires that the plan make available to you the entire amount of your annual contribution, regardless of the amount actually in your account when a claim is made.
DID YOU KNOW?...... The full election amount of your Health FSA is available on the first day of the plan year. The amount available for reimbursement is based on your annual election amount and not on your contributions to date. | 
