Open enrollment* season is upon us, so if you’re ready to rid yourself of contacts, glasses, readers, or bifocals, now is a great time to plan for 2016. Employer-sponsored Flex Spending and Health Savings Accounts allow you to set aside pre-tax dollars to help pay for approved medical expenses throughout the year – including LASIK and Refractive Lens Exchange! To better understand these tax savings plans, we spoke with Yvonne Waterman, a Senior Account Executive from CBIZ Benefits and Insurance. Read on to learn how to maximize these benefits in 2016.
What is an FSA?
A flexible spending account (FSA), also known as a flexible spending arrangement, is one of a number of tax-advantaged financial accounts that can be set up through a cafeteria plan of an employer in the United States.
What is an HSA?
A health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP). The funds contributed to an account are not subject to federal income tax at the time of deposit.
What are the contribution limits of either an FSA or HSA?
With the FSA, there is an annual limit of $2,500 regardless of single or family enrollment and is all employee dollars; HSA accounts vary depending on your employer; for accurate information regarding limits to your HSA account, contact your HR director.
Do the funds expire?
Under the FSA – yes. If you do not use them within the same calendar year, those funds are forfeited by the employee. For an HSA – no. Any unused money rolls over year to year and never expires.
What are the biggest differences between the manners in which these are handled?
The FSA is managed by the employee but if you don’t use it you lose it. Also if your employment is terminated or you resign the money will be forfeited. The HSA is also managed by the employee but it is the employee’s money, if you leave a place of work the money will go with you and is able to be rolled over.
If you’re planning to use and FSA or HSA to help pay for a procedure, now is the perfect time to come in for an evaluation to find out if you’re a candidate. Then you will know how much to set aside in your plan to have your laser vision correction procedure. Click here to schedule a consultation or give us a call at 913-491-3330 to discuss your options.
* Open enrollment periods are brief and vary by employer — check with your HR director or benefits manager for information regarding your specific plan.Leave a reply →