A Health Flexible Savings Account (Health FSA) is an employer-sponsored plan that allows you to deduct dollars from your paycheck and deposit them into a special account. Health FSA accounts are exempt from federal income taxes, Social Security (FICA) taxes and, in most cases, state income taxes. The money in a Health FSA can be used for eligible health and/or dependent care expenses that are incurred while you are participating in the plan.
What are the benefits of a Health FSA?
A Health FSA is a great way to pay for expenses with pre-tax dollars.
- Enjoy potential tax savings with pre-tax deductible contributions and tax-free reimbursements for qualified expenses.
- Quickly and easily access funds using the prepaid card at point of sale, or request to have funds directly deposited to your bank account through the website or mobile app.
- Covers what your health insurance doesn’t – like deductibles, co-pays and other eligible expenses.
- Makes reimbursement for expenses easy – the full amount you set aside is available on your first day of coverage.
With a Health FSA, you elect to have your annual contribution deducted from your paycheck each pay period, in equal installments throughout the year, until you reach the yearly maximum you have specified. Health FSA dollars can be used during the plan year to pay for qualified expenses and services.
Before you enroll, you must first decide how much you want to contribute to your account(s). You will want to spend some time estimating your anticipated eligible medical and dependent care expenses for the calendar year.
Be sure to estimate your healthcare expenses carefully as money left unspent in your Health FSA at the end of the year will be forfeited.
Health FSAs are accounts offered by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC) and administered by WEX Health, Inc.
The amount you save in taxes will vary depending on the amount you set aside in the account, your annual earnings, whether or not you pay Social Security taxes, the number of exemptions and deductions you claim on your tax return, your tax bracket and your state and local tax regulations. Check with your tax advisor for information on how your participation will affect your tax savings.
This page highlights some of the benefits of a Health FSA. If there is a discrepancy between this material and your plan documents, the plan documents will govern. WEX Health, Inc. reserves the right to amend or modify the services at any time.