Flexible Spending Accounts (FSA)

1. What are FSA'S?
 
  There are two types of FSA'S, Healthcare Reimbursement Accounts and Daycare Reimbursement Accounts. These accounts fall underneath the Section 125 code and allow employees to take advantage of certain pretax benefits for their out-of-pocket costs for health, dental, and vision expenses that are not covered by insurance, as well as, eligible daycare expenses. These accounts are individual accounts and the employee can elect one or both. The employee receives tax advantages on the Federal Tax, FICA, and State tax.


2. How Do FSA'S Work?
 
  An employee elects to have an amount transferred from his gross paycheck, before taxes are taken out, and put into either a Flexible Spending Account or a Daycare Reimbursement Account. When the employee incurs an eligible out-of-pocket expense for one of the accounts, they would present their FSA Debit Card for payment or receive a receipt indicating the date of service, what was done/purchased, and for how much. If they use their FSA Debit card, the funds would be deducted directly from their account. If they paid for the service or product by some other means, they would submit the receipt with a claim form, and would receive back out of their account the funds. This check would be tax-free.

Try this calculator and consider all eligible expenses listed below: Download Calculator


3. What Are Eligible Expenses?

 Eligible Healthcare Expenses include, but are not limited to:
  
  Acupuncture   Over the Counter Drugs
  Handicapped person's care   Birth control
  Hearing aids & batteries   Deductibles
  Birth prevention surgery   Infertility treatment
  Dental expenses   Braille books & magazines
  Insulin & diabetic supplies   Dentures
  Chiropractors   Laser eye surgery
  Diagnostic fees   Co-insurance
  Learning disabilities care   Drug addiction treatment
  Co-payments   Obstetrical expenses
  Durable medical equipment   Contact lenses & solutions
  Orthodontia   Eye examination, Eye Glasses
  Oxygen equipment   Physical examinations
  Prescription medications   Psychiatric care
  Smoking cessation programs   Sterilization
  
 Eligible Daycare Expenses include, but are not limited to:
  
  Daycare Expenses   Baby Sitting (With Restrictions)
  Day Camp   After School Programs
  Pre-School