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Health Care FSA


Tax Savings Example

Jill earns $36,000 annually and has out of pocket costs for deductibles and co-pays on her Medical & Dental plans. Jill wears contacts and also needs a dental crown this year.

Without Health Care FSA:

Gross(taxable) Pay $36,000
Taxes @ 24.5% -$8,820
Net Take Home $27,180
Out of Pocket Health Care Costs -$2,400
Spendable Income After Health Care Costs $24,780

With Health Care FSA:

Gross Pay $36,000
Pre-Tax Health Care Deduction -$2,400
Taxable Pay $33,600
Taxes @ 23.8% -$7,997
Spendable Income After Health Care Costs $25,603

Jill has increased her take home pay by $823 per year (approximately $69 per month) by participating in the Health Care Flexible Spending Arrangement. Jill will save even more if her premiums are also deducted on a pre-tax basis through the Premium Conversion Plan.

Health Care FSA
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How does it work?
Choosing an election
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