Example of How You Can Save
Flexible spending accounts help you save because the money you put into these funds is not taxed. Here's an example of how an employee with an annual salary of $55,000 can save $840 in taxes by putting $2,500 into a Dependent Care Fund and $500 into a Health Care Fund.
With Flexible Spending Accounts
| Annual Salary |  | $55,000 |
| Dependent Care Fund | | - $2,500 |
| Health Care Fund | | - $500 |
|
| Taxable Income | | $52,000 |
| Taxes (28%) | | - $14,560 |
|
| Take-Home Pay | | $37,440 |
Without Flexible Spending Accounts
| Annual Salary | | $55,000 |
| Taxes (28%) | | - $15,400 |
|
| Net Pay | | $39,600 |
| Dependent Care expense | | - $2,500 |
| Health Care expense | | - $500 |
|
| Take-Home Pay | | $36,600 |
|
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Tips on Using Your Spending Account™ Card
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