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How to Pay For the Cost of Eye LASIK Surgery
-Using Your Flexible
Spending Account & Pre-Tax Dollars
Did you know you that if you have access to
a flexible spending account, you don't have to pay income
taxes on the costs associated with your Eye LASIK Surgery? For
example, if you pay $4,000 for your procedure and you are in a
28% tax bracket, that equates to a tax savings of $1,120! That
means that $4,000 procedure you were thinking about having
really only costs you $2,880 once you factor in your tax
savings.
What is a Flexible Spending
Account?
A Flexible Spending Account is an benefit
offered by some employers that allows you to pay for certain
medical expenses using pre-tax dollars. The funds are
typically used to pay for expenses not covered under regular
medical insurance plans.
A Flexible Spending Account
allows you to save money by reducing the amount of income
taxes you owe. The amount of money that you contribute to a
Flexible Spending Account is deducted prior to State, Federal,
or Social Security tax amounts being calculated. These
contributions are therefore never reported to the IRS as
taxable income allowing you to save money.
How does
a Flexible Spending Account Work?
At the beginning
of the plan year, your employer asks you how much you want to
contribute for the year. You only get one chance per year to
enroll, unless you qualify for a family change status
(examples include marriage, divorce, birth or loss of spousal
insurance), so you should plan carefully. You don’t want to be
in a position where you have too much deducted and then find
that the expenses you were going to deduct are not eligible.
Read your employers plan carefully and seek assistance from
the plan administers, or your human resources department
before making your final elections. Once you determine your
annual election amount, your employer will withhold equal
amounts from each paycheck which will be deposited in a
special account until you submit claims with required receipts
for reimbursement of your eligible expenses. Don't forget to
request reimbursement of all of your eligible expense before
the designated yearend deadline, otherwise you may not be
reimbursed.
What Type of Expenses Are
Eligible?
Any expense that is considered a
deductible medical related expense by the Internal Revenue
Service and is not reimbursable through your insurance
provider can be reimbursed through Flexible Spending Accounts.
Costs that are typically included are eye LASIK surgery,
glasses, contact lenses, elective surgery, orthodontics, over
the counter medications and co-payments for office visits and
prescriptions.
Not all employers participate in
Flexible Spending Account programs. It is recommended that you
check with your benefits representative to see if this type of
plan is offered. Sometimes these plans are called also called
flex plans, Medical Spending Accounts, Cafeteria Plans, Flex
125, reimbursement accounts or Tax Saving Plans. Rememer, if
you are thinking about having money deducted for any time of
elective surgery, such as LASIK, you should first have a
consultation to determine if you are a candidate for the
procedure.
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