Flexible Spending Accounts and Health Savings Accounts are ideal options for financing your LASIK procedure. These plans offer tax advantages as they are funded with pre-tax money. The plans are easy to use, and we can help you maximize your FSA plan by applying your benefits towards your LASIK procedure before the end of the year.
Your Unused FSA Funds May Expire on Dec. 31st
What is the difference in an FSA and an HSA?
What is a Flexible Spending Account?
An FSA, short for Flexible Spending Account, is exclusively an employer established benefit plan that can be used for medical expenses, dental care, and vision care. If your employer offers FSAs, you choose the dollar amount to be deducted from your salary to be deposited into your FSA account pre-taxation; essentially allowing you to use untaxed income to pay for medical services.
Your FSA is like health insurance, but it comes out of your own pocket (untaxed) and some employer contributions may be made on top of the specified FSA dollar amount cap ($2,500).
By using an FSA, you save money on income tax and get to use pre-tax savings towards medical expenses. FSAs are typically owned by the employer, and any unused FSA funds typically expire at the end of the year.
What is a Health Savings Account?
Health Savings Accounts are similar to Flexible Spending Accounts in that they both allow you to save pre-tax dollars to be used for health care costs. This includes insurance deductibles and qualified medical expenses, including those that may not be covered by health insurance, such as vision care.
Health Savings Accounts are usually controlled by the individual (not the employer) and funds can rollover into a new year instead of expiring as they would in a Flexible Spending Account.
How Do I Take Advantage of an FSA?
You can enroll in a Med-FSA during your employer’s annual Open Enrollment period for the following year. This is usually in June or November. Only those that experience a family status change can enroll or make changes to elections in the middle of the year. If currently enrolled and wanting to continue your Med-FSA benefit for the following year, you MUST make a new election each Open Enrollment.
Your employer will ask you how much you would like to allocate toward your FSA (up to $2,500). This money can be used during the course of the next year to pay for eligible expenses like LASIK. For example, you can save as much as $1,000 in tax from using your FSA for a LASIK procedure.
Remember: not all of your FSA funds will carry over to the next year. Up to $500 can be carried over, so use it or lose it!
Using Your FSA or HSA funds for LASIK
If you would like to find out more about using an FSA or HSA plan for your LASIK procedure, please call our office at (510) 431-5511 or use our online form to schedule your free LASIK consultation. We’ll discuss your financing options and answer any questions you may have.