What is Health Care FSA?
The Health Care FSA is a tax-free account that allows you to pay for essential health care expenses that are not covered, or are partially covered by your medical, dental, and vision insurance plan. By contributing a portion of your payroll dollars into your FSA on a pre-tax basis, you can save from 25% to 40% on the cost of eligible expenses you are already incurring. When you enroll in an FSA, you decide how much to contribute to the account for the entire Plan Year (July 1, 2009 – June 30, 2010). The money is deducted from your paycheck, pre-tax (before Federal and FICA taxes are deducted) in equal amounts over the course of the plan year. After you incur expenses that qualify for reimbursement, you submit (reimbursement requests) to ASI to request tax-free withdrawals from your FSA to reimburse yourself for these expenses. The key to getting the most out of your Health Care FSA is to maximize your contributions based on the expenses you, or any of your tax dependents, anticipate in
