Find An FSA That Works For You!
You may participate in this FSA benefit even if you are not enrolled in a Valleywise Health medical plan. There are two types of Flexible Spending Accounts – the Health Care FSA and the Dependent Care FSA.
Health Care FSA
Used to pay for services not covered by your medical, dental or vision plan such as copays, coinsurance, deductibles, prescription expenses, lab exams and tests, contact lenses and eyeglasses.
Used to pay for day care expenses associated with caring for elder or child dependents that are necessary for you or your spouse to work or attend school full-time. You cannot use your Health Care FSA to pay for Dependent Care expenses.
Comparing The Two FSA Plans
First, you contribute to the account(s) with pretax dollars deducted from your paycheck. That means no taxes (federal, state or Social Security) will be withheld from any of those dollars.
Then, you pay for certain eligible expenses out of your pocket as usual. You may use your debit card or submit a claim (along with the appropriate documentation) to be reimbursed for those expenses from the dollars in your account.
There is a “use it or lose it” rule imposed by the IRS. In other words, if you do not spend all the money in your FSA by the deadline, any unused dollars in your account(s) after the deadline will be forfeited.
Save On Your Taxes With FSAs!
|Health Care FSA||Dependent Care FSA|
|Without Account||With Account||Without Account||With Account|
|Your Taxable Annual Income||$50,000||$50,000||$50,000||$50,000|
|Account Deposit (Before Taxes)||N/A||$2,500||N/A||$5,000|
|Federal & Social Security Taxes||$14,325||$13,609||$14,325||$12,894|
|Expense (After Taxes)||$2,500||N/A||$5,000||N/A|
|Take Home (Net)||$33,175||$33,891||$30,675||$32,106|
|Annual Tax Savings||$0||$716||$0||$1,431|