Military Health Care Flexible Spending Account

Did you know that military members can save on their taxes by participating in the Health Care Flexible Spending Account (HCFSA)?  Military members are eligible to set a portion of their paycheck aside in the FSA to pay for eligible medical, dental, and vision care expenses including copays and deductibles. Some drugstore purchases like over the counter medications are also eligible. Members of the regular active component as well as reserve and national Guard components performing active Guard and reserve duty are eligible to participate. Deductions to the HCFSA are deducted before taxes are computed meaning you are paying for expenses with pretax dollars, effectively reducing your out-of-pocket cost by up to 30% or more and helps you budget for medical expenses.

How it works:

• Members can sign up at FSAFEDS during the upcoming open season running from mid-November to mid-December. Select an amount to be deducted from you pay and the funds will be placed in your account. You can then arrange for payments to be sent directly to your provider or reimburse yourself for expenses incurred. Your account is easily managed using the online tools.
• Members can contribute up to $3,300 per year. Deductions reduce your taxable income, so if you make $48,000 per year and contribute $3,300 to your DCFSA your taxable income will be only $44,700.
• Members participating should be careful to carefully estimate their expenses as funds in excess of $660 withheld but not used are lost. The maximum carry over into the next calendar year is $660.

Learn more about the plan at FSAFEDS. The site has educational information, FAQs, savings calculators to help you determine how much you can save, and links to sign up and manage your account.

Find Out More with MyMilitarySavings.com and Finance!