Flexible Spending Accounts (FSA) allow the user to put money aside without paying income tax on it. This money can be used for medical and dental expenses. Depending on your tax bracket, this way of paying expenses can save you money. There is a catch however. Any money put aside in an FSA and not used is returned to the employer. You lose money that you earned. A common strategy is to use up all of the money in the account by timing dental work at the year’s end. That’s fine to do, but please don’t wait until December!
If you have an FSA available, it’s also a good idea to talk to your dentist about expected expenses for the upcoming year so that you can plan appropriately.
Leave a Reply
You must be logged in to post a comment