An FSA means more money in your pocket. Look at the example below to see exactly how much savings can be realized in one year.
| FSA Plan |
No FSA Plan |
|
|---|---|---|
| Annual Income (before taxes) |
$24,000 | $24,000 |
| Pretax Health Care Contribution |
($1,500) | $0 |
| Pretax Dependent Care Contribution |
($4,000) | $0 |
| Taxable Income |
$18,500 | $24,000 |
| Estimated Taxes (25% Federal) |
($4,625) | ($6,000) |
| Health Care Expenses |
$0 | ($1,500) |
| Dependent Care Expenses |
$0 | ($4,000) |
| Available Income |
$13,875 | $12,500 |
| Estimated Savings = $1,375 |
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