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Flexible Spending Accounts (FSA)

Flexible Spending Accounts from UBT

A Flexible Spending Account (FSA) is an employer-sponsored benefit account that allow you to set aside tax-free money to pay for out-of-pocket healthcare expenses. If you expect to incur medical expenses that won’t be reimbursed by another plan, FSAs are a great way to save money while covering those costs.

FSA Tax Benefits

  • 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.
Federal Tax Rate Annual FSA Contribution Annual Tax Savings
15% $1,550 $429
15% $2,650 $600
25% $1,550 $584
25% $2,650 $865
35% $1,550 $708
35% $2,650 $1,077
For illustrative purposes only. Savings calculations are based on the Federal tax rate listed in the table, a state tax of 5%, and 7.65% FICA. Your tax situation may be different. Please consult your tax advisor.

 

FSA Contribution Limits

The Internal Revenue Service (IRS) has established a 2018 maximum contribution of $2,650.

 

FSA Eligible Expenses

Below is a quick reference list of 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 (file will open in a new tab). 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.