How do you use a Healthcare FSA?

Video Transcript:

Did you know that you can cover expected healthcare expenses such as doctor visits, prescription drugs, and even glasses or contact lenses while also receiving a tax break? You can with a healthcare flexible spending account, also known as a Healthcare FSA, which is an account that can be used to reimburse you for eligible medical expenses.

Your expenses may be reimbursed after paying out of pocket, or paid by using a Benefits Debit Card. During your annual enrollment, you'll select the total amount of money to be deducted from your paycheck to cover medical costs throughout the year. The full amount you elect is available at the beginning of your plan year. Because contributions are taken out of your paycheck before income tax is calculated, this may result in more take home pay.

Let's meet Jim. Jim makes $4,000 per paycheck and is paid monthly. By contributing $200 a month to a Healthcare FSA, he would save over $55 a month in tax. That's a savings of almost $665 a year.

With thousands of eligible expenses, you have many options for how to use your funds. And don't forget. Your Healthcare FSA follows Internal Revenue Code guidelines. This means you'll need to save and submit itemized documentation for your medical expenses to prove they're eligible for reimbursement. Simply take a photo and upload the documentation online or through our mobile app.

American Fidelity, a different opinion.

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