If you are someone who likes to plan ahead of time for important expenses, such as medical bills, then you are probably familiar with a FSA account. A FSA account, also known as a Flexible Spending Account, can be used to pay for things like prescription drugs, copays, medical equipment, and many other necessities. However, it’s important that you become familiar with the flexible spending account rules before you sign up for one. There are many benefits to using a FSA, especially if you are someone who gets sick a lot or has chronic health problems, but you still need to be aware of everything regarding FSA accounts before you sign up for one so you can be sure you’re making the right decision on what’s best for you.
What Are the Benefits of Using a FSA?
If you are thinking about opening a Flexible Spending Account, then you may want to know what the benefits of doing so are. Here are the main reasons people use FSAs:
- You can use the money in your FSA for things like visits with your Miami optometrist; you can cover the copay for visiting the doctor and also pay for glasses, contacts, or any other things you need from them.
- The money in your FSA account is untaxed. You will be able to deposit money into your account and use it on medical expenses without having to pay any taxes on it–this can result in drastic savings when tax time comes.
- The money deposited in your FSA does not affect your end of year taxes. For example, if you make $50,000 per year and put $2,000 into your FSA, then you can claim $48,000 as your overall income, thus reducing the amount of money you have to pay in taxes.
- One downside to using a FSA is that the money expires at the end of the year; if you don’t use your FSA money on medical expenses, then it will not roll over into the following year.
Using Your FSA Wisely
If you require glasses or contacts to see normally, then you probably want to save as much money as possible on expenses related to your optical aids. Many eye doctors in Miami work with those who use FSA accounts, so you can get your annual exam and have anything you need paid for with untaxed dollars from your income. Your regular health insurance will cover the cost of the visit, and then your FSA can cover any glasses or contacts that you need–this allows people to get the medical care they require without having to spend any money out of pocket. It also allows them to save quite a bit of money on taxes, which is a bonus for anybody.