Flexible Spendings = Money Savings
flexible spending accounts can save you money
More and more plans are requiring a higher percentage of “cost sharing” between employers and their employees. The simple co-pay you used to incur when going to the doctor has now turned into deductibles and coinsurance, and in return for relatively lower premiums, the cost of each visit is now larger. With all of these out-of-pocket costs, it becomes even more important to find creative ways to save money while getting your health care.
Flexible Spending Accounts, or FSAs, are sponsored by many employers and will allow employees to withhold money from their regular paycheck before taxes are calculated, and this money is put aside into an account. When you incur a health, dental or other qualifying expense, you can reimburse yourself from the money you’ve saved in the account (up to $2,600 for 2017). The tax savings, depending on your tax bracket can be significant – maybe $300 or more each year.
Ensuring that you keep abreast of what you have used for the year will help you plan as you progress through the year and avoid the last minute end of the year rush to use your dollars. Many FSA vendors have options to use online systems for claims submission and checking your balances.
If you have any questions, don’t be afraid to ask your FSA vendor or employer representative for help.