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Health Care Reimbursement Account |
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The Health Care Reimbursement Account may also be referred
to as a Flexible Spending Account or FSA.
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How Does It Work?
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A Health Care FSA can reimburse you
for eligible
Health Care expenses that are not covered by your health insurance
plan. These include deductibles, copays and certain out-of-pocket
expenses.
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| How Much Should I Contribute? |
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Costco allows Employees to choose how much they would
like to contribute. Part Time employees can choose any annual amount
between $120 and $2,500. Full Time employees can choose any annual
amount between $120 and $5,000.
Consider last year's health-related expenses, including medical,
dental, vision or pharmacy costs you foresee that might not be covered
under your health plan. Also consider any changes in your family
status that might have an impact on these expenses.
For help deciding how much to contribute, check out the FSA
Savings Calculator. |
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| What are Eligible Expenses? |
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All expenses must be qualified medical, vision,
pharmacy, mental health, or dental benefit expenses as defined in
Section 213(d) of the Internal Revenue Code. For a complete list,
click
here.
Below are examples of eligible expenses that are reimbursed through
a Health Care FSA:
- Chiropractic treatment
- Contact lenses/saline solution
- Copayments/coinsurance
- Deductibles
- Dental work/orthodontia
- Doctor’s fees
- Eye exams
- Eyeglasses
- Hearing aids
- Laboratory fees
- OTC
medicines
- Orthodontia
- Prescriptions
- Psychiatric treatment
- Routine physicals
- Weight Watchers® (as treatment for obesity or an obesity-related disease)
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| How Much Could I Save in Taxes? |
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Your savings will depend on several factors, including
your income, tax bracket and yearly health care expenses. For example,
assuming an annual income of $40,000, a 15% tax bracket, and estimated
health care expenses of $2,000, your tax savings will be approximately
$453 annually by using a Health Care FSA.
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With FSA |
Without FSA |
FSA Savings |
| Annual Income: |
$40,000 |
$40,000 |
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| Estimated Health Care Pretax Contributions: |
$2,000 |
$0 |
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| Taxable Income: |
$38,000 |
$40,000 |
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| Estimated Federal Withholding: |
$5,163 |
$5,463 |
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| Estimated FICA: |
$2,907 |
$3,060 |
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| Health Care Expenses (without FSA): |
$0 |
$2,000 |
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| Net Pay: |
$29,930 |
$29,477 |
$453 |
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Filing Status: Head of Household with one dependent. These projections
are only estimates of 2006 tax information and should not be assumed
to be tax advice.
Consult a tax advisor to determine the appropriate tax advice for
your situation. To see how much YOU can save, check out the FSA
Savings Calculator. |
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| How am I Reimbursed? |
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We make reimbursement easy! We offer several automatic
reimbursement
options so you don't have to complete a paper claim form.
For forms, click
here |
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