Flexible Savings Accounts
Bottom Line
FSAs could give you a bigger tax savings by paying down medical expenses with pre-tax dollars.
In the next few posts, we'll explore Flexible Savings Accounts (FSAs) and the ways you can save money by using them. Find out if your employer offers them and take advantage of this great benefit. With good planning and tracking of FSA claims, you can save quite a bit of money.
Let's say you have medical copays that annually run you up about $200. Instead of paying that out-of-pocket, use the benefit that the IRS is providing and pay it down with $200 pre-tax. Some employers allow you to use this money for uninsured procedures and even over-the-counter medications. Benefits typically expire at the end of the calendar year (December 31), so be sure to make use of the money that you deducated from your paycheck for every year (this is where the planning comes in). For those who may pay out-of-pocket for significant medical expenses, this can save you quite a bit. In the next post, we'll consider an example and see exactly how much can be saved.
FSAs could give you a bigger tax savings by paying down medical expenses with pre-tax dollars.
In the next few posts, we'll explore Flexible Savings Accounts (FSAs) and the ways you can save money by using them. Find out if your employer offers them and take advantage of this great benefit. With good planning and tracking of FSA claims, you can save quite a bit of money.
Let's say you have medical copays that annually run you up about $200. Instead of paying that out-of-pocket, use the benefit that the IRS is providing and pay it down with $200 pre-tax. Some employers allow you to use this money for uninsured procedures and even over-the-counter medications. Benefits typically expire at the end of the calendar year (December 31), so be sure to make use of the money that you deducated from your paycheck for every year (this is where the planning comes in). For those who may pay out-of-pocket for significant medical expenses, this can save you quite a bit. In the next post, we'll consider an example and see exactly how much can be saved.
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