BENEFITS OF A FLEXIBLE SPENDING ACCOUNT

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BENEFITS OF A FLEXIBLE SPENDING ACCOUNT

October 14, 2020

Those of you who have Flex or Cafeteria, Employee Benefit Plan (also called a Pre-Tax plan) at work will soon be given your elections for 2021. According to the EBFlex website, there is a projection of no changes to the 2021 Health Care FSA Limit for a continued annual maximum of $2,750 per plan year. As a result, the maximum Health Care FSA rollover limit of $550 will remain unchanged for plans that begins or renew on or after January 1, 2021.

What is an FSA?
A Flexible Spending Account (also known as a flexible spending arrangement) is a special account you put money into that you use to pay for certain out-of-pocket health care costs. You don't pay taxes on this money. This means you'll save an amount equal to the taxes you would have paid on the money you set aside. Open enrollment for FSA plans typically begins in November. Check with your employer’s Human Resources for more information.

Some people don't realize LASIK eye surgery is considered eligible under a FSA (or HSA) plan because they might see it as an elective procedure, rather than necessary. But in fact, these plans do allow one to use tax-free income towards LASIK vision correction. It’s important to know if you qualify for LASIK, and most surgeons will offer a complimentary consultation to determine eligibility.

LASIK doesn't just slightly improve vision; it corrects nearsightedness, farsightedness, and even astigmatism in patients, possibly eliminating their need for glasses or contacts. In other words, it can dramatically improve their lives while reducing eye care costs.

If you aren’t a candidate for LASIK or not planning any elective procedures next year, it’s important to know that most company deductibles and co-pays are increasing as companies try to save on health insurance premiums, which go up by an average of 10% or more per year. Make sure when you consider how much to contribute to your FSA account, you understand how much you will be out of pocket for annual exams, prescription medications, eyeglasses, contacts, etc.

NOTE: These benefit plan adjustments are subject to change and will not be official until the IRS releases a Revenue Procedure on this and other benefit limits later this fall and we will report any additional updates to these limits as they may become available.

Dr. Stewart Shofner has performed over 60,000 ocular surgeries on middle Tennessean’s eyes and is Nashville’s choice for LASIK and cataract vision correction. Shofner Vision Center offers special discounts to all military, law enforcement, firefighters, first responders, and missionaries. Eliminate the hassle of wearing glasses or the daily routine and expense of contact lenses and schedule a free LASIK consultation at Shofner Vision Center online or call (615) 340-4733.

BENEFITS OF A FLEXIBLE SPENDING ACCOUNT

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