Section 125

Here are some examples of how an FSA cuts taxes and increases take-home pay.

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  SINGLE PARENTS WORKING COUPLE FAMILY PERSON
  Without
FSA 125		 With
FSA 125		 Without
FSA 125		 With
FSA 125		 Without
FSA 125		 With
FSA 125
Total Monthly Income $2,333.00 $2,333.00 $3,750.00 $3,750.00 $3,333.00 $3,333.00
Monthly
Pre-Tax Deductions
Medical/Dental/Vision Expenses1
Child-Care Expenses2

Income after pre-tax deductions
 
$.00

$.00

 

$2,333.00
 
$60.00

$200.00

 

$2,073.00
 
$.00

$.00

 

$3,750.00
 
$75.00

$300.00

 

$3,375.00
 
$.00

$.00

 

$3,333.00
 
$75.00

$.00

 

$3,258.00
Montly Taxes
Federal, State, FICA*

Income after taxes
 
$583.25

$1,749.75
 
$518.25

$1,554.75
 
$937.50

$2,812.50
 
$843.75

$2,531.25
 
$833.25

$2,499.75
 
$814.50

$2,443.50
Monthly
Post-Tax Deductions
Medical/Dental/Vision
  Expenses
Child-Care
  Expenses**

Income after post-tax deductions
 

$60.00

$200.00

 

$1,489.75
 

$.00

$.00

 

$1,554.75
 

$75.00

$.00

 

$2,437.50
 

$.00

$.00

 

$2,531.25
 

$75.00

$.00

 

$2,424.75
 

$.00

$.00

 

$2,443.50
Monthly
Spendable Income
Employee monthly savings

Employee yearly savings
$1,489.75

$.00

$.00
$1,554.75

$65.00

$780.00
$2,437.50

$.00

$.00
$2,531.25

$93.75

$1,125.00
$2,424.75

$.00

$.00
$2,443.50

$18.75

$225.00
* Examples assume a 25 percent tax bracket.
** Does not include any availiable tax credit for child-care expenses.
1 FSA contributions for medical/dental/vision.
2 FSA contributions for child-care.
©2003 Summit Consolidated Group