A Health Care Spending Account is a benefit that allows you to direct part of your pay – on a pre-tax basis – into a special account you can use throughout the year to reimburse yourself for certain health care expenses. Because this money goes into your account before federal or Social Security taxes are withheld, you pay less in taxes – and have more disposable income. In most cases, you avoid state and local taxes as well. Your tax advisor can tell you if this exemption applies in your state.
You can use your Health Care Spending Account to reimburse yourself for deductible, coinsurance and copays, as well as health care expenses the IRS considers tax-deductible by submitting this form. Some examples:
Visit the Aetna FSA Web site for more information on Health Care Spending Accounts, including helpful calculators and tools.