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- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- Ask the CIO
- Connected Government
- Consolidating Mission-critical Systems
- Constituent Servicing
- Continuous Monitoring: Tools and Techniques for Trustworthy Government IT
- The Data Privacy Imperative: Safeguarding Sensitive Data
- Eliminating the Pitfalls: Steps to Virtualization in Government
- Federal Executive Forum
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- Government Cloud Brokerage: Who, What, When, Where, Why?
- Government Mobility
- Mission-critical Apps in the Cloud
- Mobile Device Management
- The Modern Federal Threat Landscape
- The Path from Legacy Systems
- Understanding the Intersection of Customer Service and Security in the Cloud
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.