Flexible Spending Accounts
Use Tax-Free Dollars to Pay for LASIK!
What is a Flexible Spending Account (FSA)?
A Flexible Spending Account (FSA), (also called flex plan, reimbursement account, Flex 125, Tax Saving Plan, Medical Spending Account, a Section 125, or a Cafeteria Plan), is an employer-sponsored benefit that allows you to pay for eligible medical expenses on a pre-tax. If you expect to incur medical expenses that won't be reimbursed by your regular health insurance plan, you should be taking advantage of your employer's FSA, if one is offered.
Use TLC's simple FSA Savings calculator and see how much you can save on LASIK by using a Flexible Spending Account.
FSA Benefits
FSA saves you money by reducing your income taxes. The contributions you make to a Flexible Spending Account are deducted from your pay BEFORE your Federal, State, or Social Security Taxes are calculated and the contributions are never reported to the IRS. The end result is that you decrease your taxable income and increase your spendable income. You can save hundreds or even thousands of dollars a year.
| Estimated Income Tax Savings | |||
| Your Annual Contribution | 15% Tax Bracket | 28% Tax Bracket | 31% Tax Bracket |
| $100 | $30 | $43 | $46 |
| $250 | $74 | $107 | $114 |
| $500 | $148 | $213 | $228 |
| $1,000 | $296 | $426 | $457 |
| $3,000 | $890 | $1,280 | $1,370 |
| $5,000 | $1,483 | $2,133 | $2,283 |
| Note: This example takes into account federal income taxes, FICA (Social Security taxes) at 7.65%, and state taxes at 7% (state taxes will vary). | |||
How does it work?
At the beginning of the plan year (which usually starts January 1st), your employer asks you how much money you want to contribute for the year (there are limits). You have only one opportunity a year to enroll, unless you have a qualified "family status change," such as marriage, birth, divorce, or loss of a spouse's insurance coverage. The amount you designate for the year is taken out of your paycheck in equal installments each pay period and placed in a special account by your employer. As you incur medical expenses that are not fully covered by your insurance, you submit a copy of the Explanation of Benefits or the provider's invoice and proof of payment to the plan administrator, who will then issue you a reimbursement check.
What expenses are eligible?
Any expense that is considered a deductible medical expense by the IRS and is not reimbursed through your insurance can be reimbursed through the FSA. These include most elective surgery, laser vision correction, deductibles, eyeglasses, and prescription drug co-payments.
If you would like to see how much you could save using a Flexible Spending Account, use TLC's simple FSA Savings calculator.
This offer is only available to US residents. Not all employers participate in FSA programs. It is recommended that you check with your Benefits Manager to see if your employer participates. It is important to calculate how much money to contribute for the year. If you put in more money than you need, by law, you lose it. For LASIK surgery, we recommend that you have a consultation first to determine candidacy prior to making any allocations to your Flexible Spending Account.
Dallas/Ft Worth right now! CLICK HERE
(CLICK HERE to book at another location)
