What is a Flexible Spending Account?


A flexible spending account (FSA) is a voluntary, employer-sponsored program for employees to save a portion of their income, pre-tax, to be used to pay for qualified medical or dependent care expenses incurred during their benefit plan year. FSAs give employees the opportunity to realize tax savings on medical and daycare expenses through two separate pre-tax accounts: A Medical FSA and a Dependent Care FSA.

Other Types of Accounts

Health Savings Account (HSA)

A Health Savings Account (HSA) allows employees who are enrolled in a qualified high deductible health plan to put money into an individual tax-exempt Trust. Money put into the account can be used either during the year on routine medical expenses or accumulated from year to year, providing savings for the future. Eligible medical expenses are determined by the IRS and are typically much broader than most insurance carriers (i.e. includes dental and vision). In addition, money that is contributed to an HSA can be deducted from an employee’s gross income, resulting in tax-free medical dollars.

Parking and Transportation Plans

Qualified parking and transportation plans allow employees to use pre-tax dollars to pay for the costs associated with their commutes to work. Similar to a Medical or Dependent Care FSA, employees elect the amount they want to contribute to their account, which is then funded through pre-tax deductions from each paycheck. For a Parking account, an employee may contribute a maximum of $265 per month (as of January 1, 2019), and for a Transit account, an employee can contribute a maximum of $265 per month (as of January 1, 2019). These funds can then be used to pay for parking costs, transit passes, van pool commuting costs, and other eligible commuter expenses.

Calculate Your Tax Savings

Fill out the form below to see how much you could be saving by participating in these pre-tax accounts!

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*:

*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.

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