Flexible Spending Account Information (FSAs)
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Open enrollment season for Flexible Spending Accounts (FSAs) for the coming calendar year is in full swing! Many employers offer this important benefit that allows employees to set aside pre-tax money to be used toward eligible health care expenses. Allowed expenses may include services that are not fully covered by insurance such as dental care, including orthodontic treatment.
Orthodontic patients/parents may reduce their out-of-pocket expenses significantly by enrolling in Flexible Spending Account programs. Current law enables each individual to place up to $2,550 per year into an FSA account. These are pre-tax dollars that can be used towards the patient portion of orthodontic treatment.
24 month treatment (extending into 2018)
Total fee $5,000
Insurance portion $1500
Patient portion $3500 paid with FSA 2017 $1750 and FSA 2018 $1750
This way the entire patient portion could be paid with an FSA account with pre-tax dollars.
Current and future FSA account holders are advised to plan ahead to make the best use of tax-advantage funds. Check with your employer for the dates of their FSA open enrollment period as well as guidelines that are specific to your employer’s plan. If you or someone in your family is considering orthodontic treatment in the coming year, give us a call to help map out the best use of your FSA funds and other benefits.
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