Before It’s Too Late!
If you have a Flexible Spending Account (FSA), the benefits you paid for all year run out on December 31st! Therefore, the Sacramento Dentistry Group wants to encourage you to take advantage of your FSA and spend that money on keeping a healthy smile! All dental expenses are valid claims on this type of medical savings account.
What is an FSA?
An FSA allows you to reserve a chosen amount of money for medical expenses. The money is taken from your annual salary. Since these types of expenses are tax deductible, your FSA funds are tax free! As a result of electing to use an FSA, you save considerable dollars off your annual tax liability. This is because many people do not spend enough on medical expenses to take the itemized deduction, but still have significant expenditures related to their medical needs, like dentistry.
The benefit to an FSA is that you get to use the money in your account right away! For example, if you elect to withdraw $2,000 from your annual salary, that amount is available for your use on January 1st of every year. You then “pay it back” by making deductions from every paycheck throughout the year. In effect, you get a zero percent loan for your medical expenses all year long. This is a significant difference from a related type of plan called a Health Savings Account, or HSA.
Once the account is depleted, the benefits from your FSA are done for the year, outside of the tax advantage that you accrue with every paycheck. If you do not use all of the money, however, it may not rollover! While some companies allow a limited amount of rollover to the following year ($500 is permitted by some providers), other companies do not allow any rollover. Therefore, it is very important to use all of your FSA funds every year, at least up to your rollover amount, if any. Check with your employer’s payroll office for more information about your specific FSA allowances.
So if you have FSA funds to spend and have been putting off a needed dental restoration or some type of cosmetic dentistry, use these monies before the end of the year! For more information, contact the Sacramento Dentistry Group online or by calling 916-538-6900 today!