Shows & Panels
- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- Ask the CIO
- Building the Hybrid Cloud
- Connected Government: How to Build and Procure Network Services for the Future
- Continuing Diagnostics and Mitigation: Discussion of Progress and Next Steps
- Federal Executive Forum
- Federal Tech Talk
- The Intersection: Where Technology Meets Transformation
- Maximizing ROI Through Data Center Consolidation
- Moving to the Cloud. What's the best approach for me
- Navigating Tough Choices in Government Cloud Computing
- The New Generation of Database
- Satellite Communications: Acquiring SATCOM in Tight Times
- Targeting Advanced Threats: Proven Methods from Detection through Remediation
- Transformative Technology: Desktop Virtualization in Government
- The Truth About IT Opex and Software Defined Networking
- Value of Health IT
Shows & Panels
FSA: 'S' Should Stand for Simple
Friday - 11/16/2007, 4:01am EST
- Do you want to participate? Seriously. Would you like your co-payments, deductibles, aspirin, cold medicine, even bandages (think Band-Aids™) covered? For the sake of argument here, say yes.
- Would you like to get about a 40% discount on those items?
By using a flexible spending account, you're using money that hasn't been taxed.
For example, says Registered Employee Benefit Consultant Ed Zurndorfer, suppose you went to your HMO, and your co-payment is $12. Suppose you're in a 40% combined tax bracket (federal, state, Social Security, and Medicare part A). The question now is how much would you have to earn so that after the taxes are taken out, you'll net $12.
Go ahead. We'll wait.
Give up? The answer is $20. Forty percent of 20 is eight, so $20 after your combined taxes are taken out is the $12 you need for the co-payment.
With an FSA, you can make $12 and pay $12.
That's it. It's deceptively simple.
For more, see OPM's FSAFEDS page.