Health Care Flexible Spending Account
Many expenses that you, your spouse, or your eligible dependents incur throughout the year that are not covered by the medical, dental, or other health care plan are eligible for reimbursement through a Health Care Flexible Spending Account. You may put up to $5,000 a year into a Health Care FSA.
For a complete list of eligible expenses, visit http://www.wageworks.com. Some expenses eligible for reimbursement through a Health Care FSA include:
- Deductibles
- Coinsurance amounts
- Prescription drug co-pays
- Certain over-the-counter medicines
- Durable medical equipment, like wheelchairs
Use It or Lose It
You may only be reimbursed for expenses you incur during the plan year, and any unused money you forfeit. (You have until April of the following year to submit receipts for expenses you incurred during the plan year.)
How Contributing Affects Your Take-Home Pay
The Health Care FSA lets you use before-tax dollars to pay for eligible health care expenses. That means you are paying for health care expenses with money that is taken from your pay before Social Security taxes and federal, state, and local (where applicable) income taxes are deducted. Contributing money before taxes are taken out reduces your gross salary. This lowers your taxable income and, therefore, lowers the amount of income tax you pay.
How Contributing Affects Your Social Security Benefit
The money you contribute to your Health Care FSA is not subject to Social Security taxes. Since you will pay less Social Security tax, your future Social Security benefit may be smaller than it would be if you did not participate in the Health Care FSA. If your pay exceeds the Social Security Wage Base, your future Social Security benefits may not be affected by contributing before-tax dollars to the Health Care FSA.
FSA Contacts
