Flexible spending accounts are employer-sponsored accounts employees can contribute to on a pre-tax basis. The funds in a flexible spending account (FSA) can be used for medical expenses that are not covered by your normal health insurance plan. Normally, you can elect to participate in an FSA once a year and, at that time, you will determine how much you will contribute throughout the year. The money will be taken out of your check before taxes. In order to be reimbursed for medical expenses from their FSA, employees are usually required to submit an invoice to the plan’s administrator but the option of a debit card may be available. Medical expenses that are covered include: deductibles, prescription costs, eyeglasses or contacts, hospital services, doctor’s bills and birth control. Budgeting how much you put in your FSA is very important as they include “use it or lose it” provisions.
Each person determines how much to put into their FSA based on their individual circumstances and their need. The benefits experts at Savage & Associates can help you to determine if a flexible spending account is right for you. If you own a business that is considering offering flexible spending accounts, we can work with you to determine the potential costs and benefits.
Call 419-475-8665 or fill out our on-line request form for more information or to schedule an exploratory appointment with our experienced professionals at Savage & Associates.