Flexible Spending Accounts (FSAs)
Flexible Spending Accounts (FSAs) are special accounts that you can use to cover certain out-of-pocket expenses and to save money on taxes.
How FSAs Work
FSAs are like a savings account that you deposit money into on a pre-tax basis to pay for things like medical or dependent care.
There are multiple types of FSAs and how you can use the money is based on the type of FSA your employer has decided to offer. These include:
- Medical FSAs - to pay qualified health care expenses, such as copayments, co-insurance, and costs that count toward your deductible, if your plan includes one. You can also use your Medical FSA to pay for certain over-the-counter medical supplies, eyeglasses and other medical-related items not covered by your plan. Talk to your benefit administrator for more information.
- Dependent Care FSAs - to pay for qualified child care expenses for your dependent children.
Funding Your FSA
You fund your FSA with contributions that come out of your paycheck. You can choose the amount to contribute, up to a maximum determined by your employer.
One great advantage of an FSA is that your contributions are pre-tax, which reduces your tax liability. For example, say you're in the 30 percent federal tax bracket and contribute $100 each month to your FSA. Your taxable income will decrease by $100, saving you $30 in tax.
Calculate Your Contribution
Our easy-to-use online tools and calculators help you estimate your yearly out-of-pocket costs and track your health care expenditures.
Health Care Flexible Spending Account (FSA) Calculator
Want to find out what you should contribute to your Flexible Spending Account (FSA) for your own health care expenses? Just use this convenient tool.
Dependent Care Flexible Spending Account (FSA) Calculator
Get estimates quickly and easily about your Flexible Spending Account (FSA) for dependent care coverage.
Using Your FSA
If your account comes with a debit card, you can access funds by using the card at the pharmacy, doctor's office, or other point of service. You can also submit receipts for qualified expenses to your fund administrator, who will reimburse you from your account.
An FSA is not portable, which means you cannot take the funds with you to another employer. Also, an FSA has a use-it-or-lose-it provision; any funds that you do not use by year-end are forfeited. However, you do have a grace period until March 31 of the next year to submit claims during the previous year.
