Reasons Why You Should Participate In A Flexible Spending Account
According to an article published in The New York Times, about 85% of companies (500+employees) offer Flexible Spending Accounts, while only 22% of eligible employees took advantage of this benefit. Some people are haunted by the “Use It or Lose It” phrase that is often used in conjunction with talk of an FSA, so they opt to not participate in a Flexible Spending at all. The reality, however, is that with a little planning you can save a significant amount of money each year by taking advantage of an FSA.
FSA’s allow you to use pre-tax dollars to pay for qualified medical expenses. Qualified expenses cover a broad spectrum of services, from dental work to acupuncture to contact lenses to mouth guards (for a full list of eligible health care expenses, visit Aetna’s website). Most of the time these expenses are things that you end up paying for one way or another so by forecasting how many of these you will be needing in the upcoming year and setting that money aside in an FSA, you can save anywhere from 15%-40%, depending on your tax bracket. Just think of the money you could save if you weren’t paying taxes on all the medical expenses that you incur for yourself and your family each year!
If you do end up with leftover money in your Flexible Spending Account, know that you can use that towards any dental treatment that we have recommended to you in the past. This includes Braces or Invisalign, Crowns and Bridges, Implants, Fillings, Night Guards and Extractions. The only services that you can’t use your FSA for are cosmetic procedures, such as Professional Whitening or Veneers.
Do you participate in an FSA program? If so, how do you like it and do you find that it’s worth it?
As always, thanks for reading. We still have a few available appointments between now and the end of the year, so if you need to use some of those FSA dollars, give us a call and we’ll get you on the schedule!