If you are not utilizing an FSA, maybe you should be. A Flexible Spending Account can help you save hundreds of tax dollars each year; with an FSA you end up with a tax deduction for your out-of-pocket medical and/or dependent care expenses. Doing some simple planning of the expenses you will incur in the next year, can save you approximately 28% on your insurance co-pays and deductibles, prescription drugs, diabetic supplies, eye glasses, podiatry services, dental services, orthodontics/braces, and more. And let’s not forget 28% on dependent day-care expenses for your young children up to age 13. To give you a clearer picture of the savings, take a look at the bottom line of how much more money you can have in your pocket each month according to the example (*figures will depend on employees actual earnings, tax rates, and costs):

	NO FSA Plan	FSA Plan
Monthly Income	$ 3,500.00	$ 3,500.00
Pretax Medical Expenses	–	$ 100.00
Pretax Daycare Expenses	–	$ 400.00
Pretax Premiums (health & dental)	$ 75.00	$ 75.00
Taxable Income	$ 3,425.00	$ 2,925.00
Withholding (28% for taxes, FICA, Medicare)	$ 959.00	$ 819.00
Post-tax Medical Expenses	$ 100.00	–
Post-tax Daycare Expenses	$ 400.00	–
Net Income	$ 1,966.00	$ 2,106.00

That’s an additional $140 per month, or $1680 per year! Contact your benefits representative today to find out more about utilizing an FSA, in order to save money!