Flexible Spending Accounts

	Spending Accounts

	Flexible Spending Accounts

		Helpful Hints

		Healthcare Flexible Spending Account

		Dependent Day Care FSA

	Commuter Benefits Program

	FAQs

Flexible Spending Accounts

How Much Is Too Much?

FSAs can help you save money if you accurately estimate your eligible expenses for the coming year.

Use the WageWorks Healthcare FSA calculator or the Dependent Day Care FSA calculator to help you estimate FSA eligible expenses.

Spending accounts allow you to set aside money from your salary before taxes are calculated. You can then use those funds to pay for eligible healthcare or Dependent Day Care expenses incurred by you or your eligible family members. You can set aside up to $5,000 in each account per full calendar year.

For a list of eligible expenses, visit WageWorks at www.wageworks.com. WageWorks is the administrator for the spending account programs.

Both of the spending accounts can help you pay for eligible expenses with pre-tax dollars. By using pre-tax money, you lower your taxable income and may increase your take-home pay.

For example, assume that:

You and your spouse earn an annual combined income of $50,000.

You decide to contribute $500 to your Healthcare FSA to pay for medical copayments, deductibles, coinsurance, over-the-counter drugs, and a new dental crown.

You decide to contribute $4,800 to your Dependent Day Care FSA to pay for childcare expenses. Remember, Dependent Day Care FSAs are not used for dependent health care expenses.

Here's how you can save:


	Without an FSA	With an FSA
Combined Annual Income	$50,000	$50,000
Pre-Tax Healthcare and Dependent Day Care Contributions	$0	-$5,300
Adjusted Gross Income	$50,000	$44,700
Estimated Federal Income Taxes*	-$7,500	-$6,705
Healthcare and Dependent Day Care Expenses	-$5,300	-$5,300
FSA claim reimbursement		+$5,300
Take-home Pay	$37,200	$37,995
Your savings using an FSA in this example would be $795.

* This example assumes a simplified, flat 15% tax rate, including federal income, Social Security and Medicare taxes and does not take into account any state taxation or any special exemptions or deductions you may be able to take. The above estimates are approximations designed to illustrate hypothetical FSA tax savings. However, each individual's tax situation is unique. You should confirm with your tax advisor the potential tax benefits for your particular situation.