Tax Savings Education Series: Healthcare FSA

June 27, 2022
FSA tax savings

Looking for another way to save? A Healthcare Flexible Spending Account (FSA) allows you to set aside money from your paycheck before taxes into an account to help pay for eligible healthcare costs.


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How does an FSA work?

With an FSA, you choose how much to contribute, and the money is deducted from your paycheck before taxes. You can access your funds at any time. Sign up for an FSA during your annual benefits enrollment period.


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What can I use my FSA funds on?

You can use your FSA dollars on a variety of over-the-counter (OTC) medications as well as eligible medical, vision and dental services and treatments.


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How does it help me save on my taxes?

When you contribute to an FSA, you're setting aside pre-tax dollars. You don't have to pay federal income taxes on the money you put into your account. That means you may lower the amount of federal income tax you pay.


 

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Plan how much to save

You can carry over up to $570* from your Healthcare FSA, but you will need to use the rest by the end of the year. It's important to think about how much you spend on healthcare before deciding how much to contribute.

*IRS limits subject to change