Stretch Your Dollars Further with Flexible Spending Accounts
One of the main reasons for getting insurance is to prepare for the unexpected. But what about the medical costs you do expect? Maybe you’re outfitting your youngest with braces, or maybe you wear disposable contact lenses. Plus there’s your deductible and copay every time a family member gets checked out for a cold. Wouldn’t it be nice to know you have the funds for these expenses?
A Healthcare Flexible Spending Account may help with eligible medical expenses like these, plus reduce your taxable income.
Types of Flexible Spending Accounts
Healthcare FSAs (or HCFSAs) let you set money aside before taxes for eligible medical expenses, such as doctor visits, prescription drugs, contact lenses, and dental work.
Dependent Care Account
A Dependent Care Account lets you reimburse yourself with pre-tax money for expenses associated with dependent care for children under age 13 or an adult dependent incapable of self-care.
Limited Purpose FSA
An LPFSA is typically reserved for paying specific HSA-compatible medical expenses—like dental and vision costs. Generally, you cannot have an HCFSA and LPFSA.