With the holidays rapidly approaching, it’s good for all of us to think of ways to save. Plus, if there’s a great way you can save money and get yourself a great – and deserved – gift, why not embrace it? Flexible spending accounts might sound dreary, but we all know how helpful they can be. Ultimately they offer a huge benefit: employees can choose how much of their pre-tax salary goes into an FSA to cover an assortment of healthcare expenses including co-pays, deductibles, and more. You end up saving a substantial amount – typically up to 30%.
To put it into numbers, let’s look at an example from the Office of Personal Management: “The average tax savings for a person earning $50,000 who contributes $2,000 into an FSA account is approximately $600. That means you get $2,000 worth of healthcare purchasing power plus pay about $600 less in taxes.”
Talk about a great deal! According to Employee Benefits Administrator Jody Dietel, “this is an opportunity to give yourself a raise,” – and who wouldn’t want to do that?
This is an especially good idea for medical expenses that might not always be at the forefront of our minds, like – you guessed it – hearing aids. Hearing aids, batteries, repairs, remote controls for volume adjustment, and even hearing aid dehumidifiers or sanitizers are all eligible medical expenses covered by FSA. You now have the opportunity to save a good chunk of money on all sorts of hearing aid costs. And this can allow you to make your hearing more of a priority; by removing financial stressors, you can focus on what’s really important – the ability to hear clearly!
So go forward into the holidays with a smile, knowing you’ve got a wonderful gift here for yourself – one that has the added benefit of letting you save money for gifts for your loved ones.
Aim your savings toward your hearing aids, or plan for 2015 by creating or adjusting your account by the end of the month. You’ll be extra grateful this Thanksgiving!