Directing your money into a Flexible Spending Account lowers your taxable income
If you know you’ll spend money on your health and care for your dependents, an FSA might help you save. You can sign up for or change an FSA each year during benefits open enrollment, or within 30 days of starting employment at UK.
How an FSA helps you save money
You receive your paycheck with income taxes taken out. A flexible spending account allows you to set aside a portion of your paycheck tax free in a dedicated account.
For example, if you’re taxed at 30% and you choose to direct $1,000 from your paycheck into your FSA instead of your bank account, you’ll save $300 on taxes.