How does a flex spending account work?
A flex spending account (FSA) allows many people to pay for healthcare through their jobs. This includes dental care. In addition, an FSA can help reduce taxes. It can also cover copayments, deductibles, prescription medication and other dental expenses.
How a flex spending account or FSA works
One of the main benefits of an FSA is not having to pay taxes on the money in an FSA. According to healthcare.gov, the amount of money you save is equal to the taxes you would’ve paid.
Many employers make contributions to their worker’s FSA. However, they don’t have to. Even so, an FSA is a benefit many employers offer to attract employees.
How does an FSA help with dental expenses?
You can use an FSA to pay for dental expenses related to preventative and disease treatment. The IRS website states that an FSA can include the following dental services:
- Teeth cleaning
- Sealant application
- Fluoride treatments
- Treatment for other dental aliments
Facts about FSAs
Here are some other facts about FSAs that you should know:
- The cap for an FSA is $2,750 per year per employer. Married couples can each have up to $2,750 with their employers.
- The FSA can pay for your spouse and your dependents’ dental expenses.
- Most FSAs require you to use all the money in the account within the plan year. However, other options are sometimes available. One is a grace period, allowing 2 1/2 extra months to use up the money in the account. Another option lets employees roll over up to $550 a year for use in the next year. Employers can offer either but not both of these options.
- Typically, at the end of the year or grace period, you lose the money left over in your FSA.
Do you have questions about using your FSA for dental treatment?