FLEXIBLE SPENDING ACCOUNTS

A general purpose Flexible Spending Account (FSA) is a plan that allows you to set aside part of your pre-tax earnings to pay for qualifying healthcare expenses. You might already be saving on eligible expenses like prescriptions, eyewear and other over-the-counter products required for a medical condition.

A Health Savings Account (HSA) is like a personal savings account that employees can contribute to if they are covered under a qualified high-deductible health plan. Funds may only be used for qualified healthcare expenses. Contributions are typically made with pre-tax dollars through payroll deductions.

A Health Reimbursement Account (HRA) is a type of employer-funded health benefit plan that reimburses employees for out-of-pocket medical expenses. Employers offer a monthly allowance of tax-free funds that are used to reimburse employees for eligible health care services and products.

The money you contribute to your flexible spending account is taken out of your paycheck before taxes are taken out. In effect, you lower your taxable income for tax savings. The "pre-tax funds" in your FSA or HSA allow you to pay for qualifying healthcare expenses that are not covered by your health plan, such as doctor visit co-pays, prescriptions, dental expenses, and more! FSA Cost Savings Comparison Example Goodnites® Brand MSRP: $10 FSA Potential Tax Savings: $3

Health care savings programs like these are offered through employee benefit programs. Check with your employer's benefits department for more details.

If your plan provides a debit card, that's the easiest way to pay for healthcare expenses. Some plans require that you submit a claim to receive reimbursement from your account. Check with your plan administrator for details on your account.