Medical Flexible Spending Account

What It Is

A Medical Flexible Spending Account (Medical FSA) allows employees to put aside money pre-tax to use to reimburse themselves for eligible health care expenses for themselves and their eligible dependents. In order to participate, an employee must choose the annual amount they want to contribute to their medical FSA, up to $2,600 (for 2017, as determined by IRS Code section 125(i)), during their employer’s open enrollment period. Each employer determines the maximum amount an employee may contribute to their Medical FSA during a benefit plan year, so they may offer a lower annual maximum amount. Make sure to check your specific plan provisions before making your election.

Wondering what qualifies as an “eligible expense”? Click below for a list of eligible FSA items.

How It Works

Throughout the course of the benefit plan year, equal portions of an employee’s annual election amount will be deducted pre-tax from each paycheck to fund the account, until the annual election amount is reached. Even though employees’ accounts are funded through payroll deductions, all Medical FSAs are pre-funded by the employer, which allows employees to use the full amount of their election at any point during the plan year. The full amount of each employee’s annual election will be deducted pre-tax, thus lowering an employee’s taxable income and maximizing tax savings.

Use the tax calculator below to see how much you could be saving by participating in a Medical FSA!

Calculate Your Tax Savings

Medical FSA/HSA

$ Medical Costs: co-pays, deductibles, prescriptions, OTC items, etc
$ Vision Costs: Glasses, Contacts, LASIK, etc
$ Dental Costs: Orthodontics, Fillings, Cleaning, x-rays, etc

Dependent Care FSA

$ Dependent Care Costs (up to $5,000 per calendar year)

Other Pre-Tax Benefits

$ Qualified Parking/Transit
$ Outside Insurance Premiums

Enter Your Overall Tax Rate (Federal + State + FICA)

If you don't know use 27.65 (15% + 5% + 7.65%)
%

Your FSA Savings Estimate*:
$0



*This Calculator is for entertainment/planning purposes only and does not constitute a guarantee of actual savings. This Calculator assumes that premiums for healthcare coverage are taken on a pre-tax basis and does not take into account such variables as mid-year election changes, participant forfeitures, the Dependent Care Tax Credit, or participant gains due to overspent accounts when coverage terminates early. By using this Calculator, the user agrees that 24HourFlex shall not be liable for any failure to achieve the actual savings projected by this Calculator. No animals were harmed in the making of this calculator.