Flexible Spending Accounts (FSAs)
Flexible Spending Accounts (FSAs), administered by Ameriflex, let you set aside pretax money from your paycheck to pay for eligible healthcare or dependent care expenses. You don’t have to be enrolled in a Townsquare Media medical plan to use the Healthcare FSA.
Estimate carefully! The IRS “use it or lose it” rule applies: if you don’t spend all the money in your account, you forfeit the leftover balance at the end of the year. You can’t change your election mid-year unless you have a qualifying life event.
Learn more at myameriflex.com or call Ameriflex at 888-868-3539.
How Much Could You Save?
Flexible Spending Accounts (FSAs) are one of the easiest ways to reduce your taxable income and keep more of what you earn. When you contribute to an FSA, the money you set aside for eligible healthcare expenses is not taxed—meaning every dollar goes further. For example, let’s say Tom sets aside $2,000 in his FSA for the year. Normally, he’d pay $560 in federal income tax, $100 in state income tax, and $153 in FICA taxes on that amount. But by using his FSA, Tom avoids all those taxes and saves $813. That’s money he can use for things like doctor visits, prescriptions, or medical supplies—without it ever being taxed. FSAs don’t just help with budgeting—they help you make the most of your paycheck.
Healthcare FSA
Contribute up to $3,400 per year, pretax, for eligible healthcare expenses such as office visits, surgery, prescriptions, dental and vision expenses, and certain drugstore items. Use your FSA debit card to pay during the year.
If you or your spouse are enrolled in a high-deductible health plan (such as the Cigna $7,000 HDHP), you can only use the Limited Purpose FSA.
Limited Purpose FSA
If you are enrolled in the HDHP and contributing to an HSA, you can contribute up to $3,400 per year, pretax, to pay for eligible dental and vision expenses.
Dependent Care FSA
Set aside up to $7,500 per household per year, pretax, for work-related day care expenses, including child care, before- and after-school programs, preschool and summer day camp for children under 13, and care for a spouse or adult dependent who lives with you and can’t care for themselves.
Pay your provider directly from your account or submit claims for reimbursement. Expenses must be incurred in the same plan year, and unspent funds are forfeited. You cannot use your Healthcare FSA for dependent care expenses.
Without an FSA, Tom Would Pay
- 28% in federal income tax: $560 savings
- 5% in state income tax: $100 savings
- 7.65% in Federal Insurance Contributions Act (FICA) tax: $153 savings
His total tax savings for the year with an FSA: $813
By using an FSA, Tom reduces his taxable income—and saves $813 for the year.