Myth #1 - FSAs are not worth the hassle.

FACT. FSAs can offer significant tax savings, and with all the new technology available, using your account is even easier than ever. Mobile apps and online portal make checking your balance and submitting any required documentation quick and easy. A few minutes of your time can yield hundreds of dollars in savings.

Myth #2 - It’s tedious to submit documentation for all my FSA expenses.

FACT. We agree that submitting documentation is not a fun activity, which is why we leverage technology and smart processes that limit the need to submit documentation when you use your payment card. When we cannot automatically verify your payment is for an eligible expense, we will ask you for documentation, but it takes just seconds to upload when required.

Myth #3 - The tax savings are too small to make a difference.

FACT. Do you consider hundreds of dollars too small to make a difference? Let’s look at an example. Say you contribute $2,400 to your FSA this year. If you pay a combined tax rate of 25%, you would see $600 in tax savings!* That amount can buy a lot of groceries, or supplement your vacation, shopping, or home improvement account!

The Facts About FSAsThere are many misconceptions about Flexible Spending Accounts – get the facts.

© 2018 ConnectYourCare, LLC. All Rights Reserved.

A Flexible (FSA) from ConnectYourCare offers you tax savings as well as a convenient way to pay for health care. You may have heard some myths about FSAs. Here’s some helpful information to help you get right down to the truth.

© 2018 ConnectYourCare, LLC. All Rights Reserved.

Myth #4 - I cannot make changes to my FSA throughout the year.

FACT. You may not know what is coming in the next year. It’s great to know that if you have a qualifying life event during the year, like a child or marriage, you can change your elections.

Myth #5 - I don’t have any extra money in my paycheck to put into an FSA.

FACT. It can be hard to balance your budget, but FSAs can actually help you stretch it, since your contributions are deducted pre-tax. For example, if you contribute $200 per month, your paycheck that month is only reduced about $150 (assuming a 25% tax rate).* That extra $50 is yours to spend on eligible expenses without you feeling the deduction.

Myth #6 - I don’t go to the doctor much, so I don’t need a Health Care FSA.

FACT. You may not go to the doctor much, but do you go to the dentist and eye doctor? Do you have contacts or glasses? Do you have regular prescriptions that you get filled? Do your spouse or dependents go to the doctor or have any medical, dental, vision or pharmacy expenses? All of these expenses – and more – are eligible with your FSA, saving you in taxes for all of these out of pocket health care costs.

Myth #7 - My Health Care FSA can be used to cover my child’s day care costs.

FACT. Health Care FSAs and Dependent Care FSAs are completely separate accounts and cannot be comingled. Health Care

FSAs cover medical, pharmacy, dental and vision expenses for your family, and Dependent Care FSAs cover costs like day

care, nanny, sitter or elder care for your dependents while you work.

Myth #8 - I will lose my FSA funds if I don’t use them.

FACT. Your account is designed for you to use it, not to lose it! Though FSAs differ by employer, many offer grace periods that

extend the time you may use your account, and some offer rollovers of unused funds. Check your plan documents to see what

your FSA allows.

*Sample tax savings for a single taxpayer with no dependents; actual savings will vary based on your individual tax situation. Consult a tax professional for more information.