Flex Spending

What is a Flex Spending Account (FSA)?

A Flexible Spending Account (FSA) is a benefit governed by the IRS and sponsored by your employer. An FSA allows you to pay certain Health Care and/or Dependent Care expenses with pre-tax money. Money is diverted out of each of your paychecks on a pre-tax basis and put into a Health Care Reimbursement Account and/or a Dependent Care Assistance Account. Since the money you choose to put into the FSA accounts are non taxable, you will save Federal Income Tax (10% - 35%), FICA (7.65%), and State Income Tax (0-6+%). The savings range from 17.65% to 48.65% depending on your federal tax bracket and the state you live in. Benefit Strategies uses 25.65% as a percentage most individuals can use to estimate savings. Once enrolled, you are allowed to draw money out of the accounts to reimburse yourself for out-of-pocket medical and/or dependent care expenses incurred during the plan year which are not reimbursed from insurance or other sources.

• Flex Spending Extended Health Care Expenses
• Flex Spending Eligible Expenses
• Flex Enrollment Form