October is here and with it comes open enrollment of flex spending accounts (FSA) for many employers. This employer-sponsored benefit allows employees to pay for eligible medical expenses on a pre-tax basis.
An FSA for 2014 should be considered carefully. It is ideal for those who have medical expenses that cannot be covered by insurance such as LASIK, PRK and eyeglasses. The primary benefit of using an FSA to pay for LASIK is the amount of money that can be saved. FSA’s work by reducing the amount of money paid in income taxes by decreasing the employee’s taxable income. This often equates to a 20-30% savings depending on the amount contributed and the employees tax bracket. The following chart shows the estimated tax savings by using an FSA.
Estimated Income Tax Savings
|Annual Contribution||15% Tax Bracket||28% Tax Bracket||31% Tax Bracket|
Before setting aside money for a flex spending account it is important to have verification of LASIK candidacy. You can do this by having a LASIK consultation with Dr. Kiley. The caveat to having an FSA is that you must use the money set aside before the end of the calendar year or you lose it. If you set aside money in 2013 only to find out that you are not a candidate for LASIK in 2014, you may be scrambling to find eligible medical expenses before the year runs out.
If you have been considering LASIK or PRK, now is the time. We know every budget is different and will work with you to create a plan that works for you. Call us today for an appointment so you can start saving for better vision.