Page 14 - 2018 VER Benefit Guide
P. 14
FSA and HSA Planning
Saving Money with FSAs and HSAs
The following example shows how your account may save you money.
Assume you pay about $1,500 each year on prescriptions, copayments,
deductibles, and other medical expenses, and you spend another $4,000
on child care. As you can see, you can reduce your taxable income and
increase your spending money by $1,210.
With an HSA or FSA
and a Dependent Without Any Tax
Care FSA Savings Accounts
Annual Salary Before Taxes $75,000 $75,000
Less
Healthcare -$1,500 -$0
Dependent Care -$4,000 -$0
Taxable Income $69,500 $75,000
Less
Income Taxes and Social security at 22% -$15,290 -$16,500
Your Take-Home Pay $54,210 $58,500
Less
Healthcare $0* -$1,500
Dependent Care $0* -$4,000
Net Pay You Can Spend $54,210 $53,000
Your Tax Savings $1,210 $0
* You use money saved into your tax savings account (HSA or FSA for eligible healthcare
expenses and dependent care FSA for eligible dependent care expenses).
14 2018 Benefits Enrollment
Saving Money with FSAs and HSAs
The following example shows how your account may save you money.
Assume you pay about $1,500 each year on prescriptions, copayments,
deductibles, and other medical expenses, and you spend another $4,000
on child care. As you can see, you can reduce your taxable income and
increase your spending money by $1,210.
With an HSA or FSA
and a Dependent Without Any Tax
Care FSA Savings Accounts
Annual Salary Before Taxes $75,000 $75,000
Less
Healthcare -$1,500 -$0
Dependent Care -$4,000 -$0
Taxable Income $69,500 $75,000
Less
Income Taxes and Social security at 22% -$15,290 -$16,500
Your Take-Home Pay $54,210 $58,500
Less
Healthcare $0* -$1,500
Dependent Care $0* -$4,000
Net Pay You Can Spend $54,210 $53,000
Your Tax Savings $1,210 $0
* You use money saved into your tax savings account (HSA or FSA for eligible healthcare
expenses and dependent care FSA for eligible dependent care expenses).
14 2018 Benefits Enrollment
