General Purpose Flexible Spending Accounts 101
An introductory guide explaining the benefits, contributions, and usage of General Purpose Flexible Spending Accounts (GPSFAs) for medical, dental, and vision expenses.
The basics to know What is a General Purpose Flexible Spending Account (GPFSA)? A GPFSA is an employer-sponsored benefit that covers a broad range of medical, dental, and vision expenses your health insurance plan may not cover, such as copayments and deductibles. 1 The 35% example includes 24% federal tax savings, 7.65% payroll tax savings, and 3.35% state tax savings. Payroll tax savings are only available on deposits made through your employer’s payroll. State tax savings are not available in states without income taxes or in California or New Jersey. TAX Tax-free contributions Contributions to a GPFSA are made through pre-tax payroll deductions, effectively reducing your gross taxable income. Access funds from Day 1 GPFSA funds are available on the first day of the plan year, regardless of the accrued balance on the account. Savings up to 35%1 for you and your family Use tax-advantaged funds to pay for qualified medical expenses for you, your spouse, and dependents claimed on your tax return. Flexibility when choosing health insurance plans GPFSAs are not tied to your health insurance plan, allowing you to choose a health plan that fits your needs. Value of General Purpose FSAs FSA General Purpose Flexible Spending Accounts 101 livelyme.com | 1.888.576.4837 | support@livelyme.com
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