Flexible Spending Account (FSA)
An FSA account can be used:
- To pay for most healthcare expenses not covered by your insurance plan.
- For regular, predictable healthcare expenses, such as vision care, that are not covered by your medical or dental plan.
- To provide a significant tax advantage.
A spending account can save you money by using pre-tax dollars, but it requires careful planning. Keep in mind that money deducted from your pay and deposited in your Health FSA must be used during the year for the appropriate expenses. Money left in most accounts does not carry over to the next year, and it is not refundable to you at the end of the year. In other words, if you do not use it, you will lose it! However, some employer sponsored Health FSA plans allow rollover. Please refer to your benefit booklet for more information.
Note: Account-Based Plans may not be available with all Blue Cross and Blue Shield of Alabama plans. Contact your employer to see if these programs are offered as a part of your benefit plan.
For more information on FSAs administered by HealthEquity please visit HealthEquity FSA.
Tax Savings Calculator**
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* Congress establishes tax rates that apply to different levels of taxable income. Current law provides rates from 10% to 35%. The higher your income, the higher your tax rate. Click here to see what tax bracket you are in. Note: This takes you to a site that is not managed by Blue Cross and Blue Shield of Alabama.
**Terms & Conditions
This calculator is a tool to help you estimate your Health FSA and Dependent Care Account contributions and potential annual federal tax savings. As you use the calculator, keep in mind that, by law, money remaining in one of these accounts at the end of the plan year is forfeited and will not be refunded to you. Plan carefully when using the calculator to avoid contributing more to your account than you will spend during the year. Refer to your summary plan description for the maximum amount you may defer into an account.
The calculator illustrates potential federal tax savings based on standard federal tax rates. Remember, the calculator is only a tool; it is not a substitute for actual tax advice. To determine the exact effect on your tax liability, you may want to consult a tax advisor. You should check your own state and local tax laws to determine whether state or local taxes apply. Many states with a state income tax track the federal tax law, so you may have additional state tax savings.
The calculator is available for use by any member in a FSA or dependent Care Account administered by us. We provide this calculator solely as a service for our customers. The calculator is not part of a summary plan description or modified to match your employer's plan. If you have any questions about your own plan, contact the person listed in your summary plan description.