FSA

 

Are you tired of rising healthcare costs? Take control with Flexible Spending Accounts (FSAs).

FSAs are a great way for you to take advantage of a pre-tax benefit offered by your employer and save on out-of-pocket healthcare costs. With an FSA, you can pay for eligible expenses such as doctor’s office co-pays, prescription drugs, eyeglasses, eligible over-the counter products and much more with your pre-tax income. By taking advantage of your FSA, you can:

  • Reduce your taxes
  • Increase your take home pay
  • Pay for rising healthcare expenses with pre-tax dollars


With healthcare costs continuing to rise year after year, why wouldn’t you participate? 

 
With an FSA  
Without an FSA
Annual Salary       
$30,000
$30,000
FSA Contribution  
- $1,500
$0
Taxable Income   
$28,500
$30,000
Less Taxes
     Federal Income Tax (15%)
     FICA (7.65%)     
-$6,455
-$6,795
Less Healthcare Expense     
$0
-$1,500
Take-Home Pay   
$22,045
$21,705
Tax Savings       
 $340
$0

Let’s start with the definition of FSA. Quite simply it stands for Flexible Spending Account and it can be an indispensable part of your overall benefits program. Here’s how it works. An FSA is an account your employer sets up so you can pay for a variety of healthcare needs, like insurance co-pays, deductibles, specific over-the counter healthcare products and even some dental and vision costs. But here’s the best part: your FSA is funded entirely by your pre-tax income. So you can save money and offset rising healthcare costs. And the more dependents you have, the greater your savings! Here’s another way to look at an FSA: by setting aside healthcare funds pre-tax, you can increase your savings and ultimately your spending power. Below is an example of the tax savings you could enjoy by taking advantage of an FSA.

Although your FSA will be deducted through your payroll, you’ll have access to your entire FSA contribution on the first day your plan. That means you can cover all your healthcare costs without waiting to accumulate funds throughout the year.


You can also plan for large healthcare expenditures, like surgery, because you choose how much to put into your FSA account. In addition, some employers may offer a plan extension that allows you to continue to spend unused FSA funds for an additional period of time after the plan year ends.

 

 

PREFERRED HEALTH PLAN OF THE CAROLINAS
PO BOX 749 MATTHEWS, NC 28106
LOCAL: 704.847.2321     Toll Free: 866.636.0239     FAX: 704.847.3014