Flexible Spending Accounts (FSAs)

GCRBC offers two types of FSAs — medical and dependent care. FSAs allow you to set aside pretax money to pay for eligible healthcare or dependent day care expenses.

How Much Could You Save?

Here’s an example. Let’s say Tom decides to set aside $2,000 in an FSA for the year. Normally, on that money, he’d pay $560 in federal income tax, $100 in state income tax, and $153 in FICA tax. So, by contributing that $2,000 to his FSA, he’ll get an $813 tax savings for the year.

Without the FSA, Tom would pay:

• 28% in federal income tax: $560 savings
• 5% in state income tax: $100 savings
• 7.65% in Federal Insurance Contributions Act (FICA) tax: $153 savings

His total tax savings for the year with an FSA: $813

Good to Know

• You will get an FSA debit card that you can use to pay for eligible expenses at the time of purchase.
• You can also pay out-of-pocket and submit a claim to HSA Bank for reimbursement, as long as you have enough funds in your account.
• Keep all of your receipts for eligible expenses. You may have to submit them to HSA Bank to prove your expenses are FSA eligible.
• Your FSA elections NEVER carry over from year to year. You must re-elect them each year to participate.