Flexible Spending Accounts (FSAs) are a great way to save money on out-of-pocket medical expenses. By using pre-tax dollars, you are essentially saving as much as 30% on your eligible medical, pharmaceutical, dental and eye care costs! The only challenge is figuring out how much money to set aside. Click on this FSA Calculator to help you estimate your health spending for the year so you can make an informed decision and take maximum advantage of your FSA.
FSAs can also contain language to establish a Dependent Care Assistance Program (DCAP) Frequently called an DCAP FSA, may contribute up to $5,000 per year if you are married and filing a joint return, or if you are a single parent. If you are married and filing separately, you may contribute up to $2,500 per year per parent. Unlike a health care FSA, you may only receive reimbursement from your DCAP account equal to the amount you have actually deposited.
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