How you save

By contributing to the flexible spending accounts on a pretax basis, you reduce your taxable income and lower your annual taxes.

Tax savings example*

  With an FSA Without an FSA
A. Annual Salary $30,000 $30,000
B. FSA Contribution -$2,500 0
C. Taxable Earnings (line A minus line B) $27,500 $30,000
D. Taxes (28%) -$7,700 -$8,400
E. Health Care Expenses (reimbursed through FSA) 0 -$2,500
F. Take-Home Pay (line C minus line D minus line E) $19,800 $19,100
Extra Income $700  $0

* This is only an estimate. Your situation may differ.