Flexible Spending Account

Save money for out-of-pocket health care expenses

With an employer-sponsored FSA from UBT, you can set aside tax-free dollars to use for health care costs during the plan year.

What Is an FSA?

A tax-free way to plan for your health care costs

If you expect to incur medical expenses that won’t be reimbursed by another plan, employer-sponsored flexible spending accounts (FSAs) are a great way to save money while covering those costs.

  • You can save an average of 30% on qualified out-of-pocket healthcare expenses by using pre-tax dollars
  • Your full election amount is available on Day 1 of the plan year — like an interest-free, tax-free loan
  • FSA dollars are "use it or lose it," so be sure to not set aside more money than you think you will use within a calendar year
Mom, kid and doctor

Contribution Limits

Flexible spending accounts

2019 maximum contribution is $2,700

FSA Tax Benefits

Federal Tax Rate Annual FSA Contribution Annual Tax Savings
15% $1500 $340
15% $2700 $612
25% $1500 $490
25% $2700 $882
35% $1500 $610
35% $2700 $1152

 

For illustrative purposes only. Savings calculations are based on the Federal tax rate listed in the table and 7.65% FICA. Your tax situation may be different. Please consult your tax advisor.

 

Frequently Asked Questions

What expenses can my FSA be used for?

Below is a quick reference list of eligible expenses that can be reimbursed from a Flexible Spending Account. For more detailed information, please refer to IRS Publication 502 titled “Medical and Dental Expenses,” online at  irs.gov/pub/irs-pdf/p502.pdf. For tax advice, please consult a tax or legal professional.

  • Acne Treatments**
  • Allergy Medicine**
  • Antacids**
  • Bandages
  • Chiropractic Care
  • Cold Medicine**
  • Contact Lenses & Cleaners
  • Copays, Co-Insurance & Deductibles
  • Dental Care
  • Diabetic Supplies
  • Eyeglasses
  • Hearing aids
  • Laser Eye Surgery
  • Orthodontia
  • Pain Relievers**
  • Pregnancy Tests
  • Prescription Drugs
  • Smoking Cessation Programs**

**over-the-counter (OTC) drugs and medicines (except insulin) are only eligible for reimbursement when prescribed by a physician.

What are the FSA contribution limits for 2019?

The Internal Revenue Service (IRS) has established a 2019 maximum contribution of $2,700.

What expenses are covered by a Health Care FSA?

Your Health Care FSA covers hundreds of eligible healthcare expenses: co-payments for doctor visits, prescription drugs, new eyeglasses or contact lenses, etc. Keep in mind that IRS rules determine which expenses are eligible, and some expenses require a doctor's note or prescription to be eligible for reimbursement under your Health Care FSA.

What expenses are not covered by a Health Care FSA?
  • Cosmetic surgery and procedures
  • Dental whitening
  • Expenses for healthcare services rendered outside the coverage period
  • Expenses reimbursed by an insurance provider or another health plan
  • Family or marriage counseling
  • Herbs, vitamins, supplements, or other over-the-counter items used for general health
  • Insurance premiums
  • Personal use items (e.g., toothpaste, shaving cream, cosmetics)
How is a Health Care FSA funded?

Your Health Care FSA is funded through your employer. During your company's Open Enrollment period, you tell your employer how much you would like to contribute to your account for the coming year. The maximum amount you can contribute is determined by the IRS. For 2019, it is $2,700. Your employer then deducts your contribution amount (in equal portions) from your paychecks throughout the plan year. However, the entire annual election amount is available to you on the first day of your plan year. Any funds carried over from the previous plan year (up to $500) do not count toward your maximum annual contribution limit, so you could have a balance of up to $3,200.

How do I access my Health Care FSA funds?

There are several ways you can use the funds in your Health Care FSA:

  • You can use the Health Benefit Solutions VISA Card associated with your Health Care FSA to pay for eligible healthcare products and services.
  • You can be reimbursed for the eligible expenses you pay out of pocket.