Introduction
Are you struggling to cope with the cost of family doctor visits, prescriptions, new glasses, contacts, or braces for your kids? Are you putting off hearing aids, a power chair, or costly dental or vision care? Do you wish you could see your chiropractor more often? Is the cost of daycare straining your monthly budget?
If you want to manage these expenses, lower your taxes, and keep more of your hard-earned paycheck, a Gallagher HealthInvest FSA can help. You can save up to 30% or more by using pre-tax dollars for qualified medical, dental, vision, and dependent care expenses.
Gallagher HealthInvest FSA is a smart choice.
Make Your Paycheck Go Further
Who doesn’t like saving money? With a Gallagher HealthInvest FSA, you can take advantage of significant tax savings. Plus, you’ll enjoy quick and easy access to the pre-tax money you set aside for healthcare or dependent care expenses.
What is an FSA?
A flexible spending account (FSA) is a tax-free account for eligible healthcare or dependent care expenses. A Gallagher HealthInvest FSA is easy to use, and it’s a smart way to pay less in taxes and keep more your paycheck. You save big by using pre-tax dollars for a wide range of expenses for you, your spouse, and qualifying dependents.
Pre-tax Contributions
You don’t pay any taxes on money you put into an FSA. FSA contributions are deducted off the top of your paycheck before taxes are calculated. This reduces your taxable income and can help lower your overall tax liability. This tax exemption applies to state income tax (most states), federal income tax, and Social Security and Medicare taxes. Individual situations vary, but most save up to 30% or more.
Tax-free Withdrawals
Money you spend from your FSA is also tax free. This means you can pay for qualified healthcare and dependent care expenses with tax-free funds. It’s the best possible tax advantage.
Typical Tax Savings Example
Ava makes $5,000 per month. Her combined taxes total 30% (state, federal, Social Security, and Medicare). Ava and her spouse work outside of their home and have one child in daycare. They are married and file a joint tax return.
Ava decided to contribute $150 per month to a Healthcare FSA and $400 per month to a Dependent Care FSA. Ava’s taxable income dropped from $5,000 to $4,450 per month, and her taxes went down to $1,335. Her remaining net income went from $2,950 to $3,115. That’s $165 more per month than before—$1,980 in total savings for the year.
| Without FSA | |
|---|---|
| Monthly Salary | $ 5,000 |
| Healthcare FSA (before taxes) | <0> |
| Dependent Care FSA (before taxes) | <0> |
| Monthly Taxable Income | $ 5,000 |
| Taxes 30% | <1,500> |
| Healthcare Expenses (after taxes) | <150> |
| Dependent Care Expenses (after taxes) | <400> |
| Monthly Remaining Net Income | $ 2,950 |
| With FSA | |
|---|---|
| $ 5,000 | |
| <150> | |
| <400> | |
| $ 4,450 | |
| <1,335> | |
| <0> | |
| <0> | |
| $ 3,115 | |
Ava’s FSA elections put $1,980 ($165 x 12 months) back in her pocket. What could you do with your tax savings?
IMPORTANT: Individual circumstances vary. Your tax savings may be more or less. The amount you save depends on your tax bracket. The higher your tax bracket, the greater your potential savings will be. Tax savings includes state income tax (in most states), federal income tax, and FICA taxes (Social Security and Medicare). Healthcare and dependent care expenses paid or reimbursed tax-free from your FSA cannot also be claimed as a tax deduction on your tax return.
IMPORTANT: Healthcare and dependent care expenses paid or reimbursed tax-free from your FSA cannot also be claimed as a tax deduction on your individual tax return.
“Gold-bell” Service Comes Standard
You work hard and deserve the best. Based on decades of experience, our proven systems and processes deliver what we like to call “gold-bell” service. With Gallagher HealthInvest FSA, you don’t have to settle for less.
Why Gallagher HealthInvest?
Our Customer Care Center has earned BenchmarkPortal’s Center of Excellence award every year since 2015. If you need to call us, a capable representative will quickly answer your question or resolve your issue.
In addition, our proprietary system has been built from the ground up to provide smooth and efficient FSA plan administration.
- User-friendly online portal
- Handy mobile app, HRAgo® (for FSAs, too)
- Free debit card for qualified purchases
- Easy online or mobile claims submission
- Fast claims processing
- Convenient direct deposit for reimbursements
- Personalized telephone service and secure messaging
Our team is ready to help you take control of your healthcare and dependent care spending.
Pick the FSA You Need
Gallagher HealthInvest offers Healthcare, Limited Purpose, and Dependent Care FSAs. You can choose either a Healthcare FSA or a Limited Purpose FSA. You can also choose a Dependent Care FSA. Maximize your tax savings by picking what best meets your needs.
Healthcare FSA
You can use a Healthcare FSA for medical, dental, and vision expenses not covered or not paid in full by insurance. Common examples that generally qualify are listed below.
- Copays
- Deductibles
- Dental care (non-cosmetic)
- Chiropractic care
- Eyeglasses
- Flu shots
- Hearing aids
- Insulin
- Laser eye surgery
- Orthodontia
- Over-the-counter (OTC) medicines, products
- Physical therapy
- Prescriptions
- Vision care
Section 213(d) of the Internal Revenue Code defines what is a qualified “medical care” expense. IRS Publication 502 contains guidance that primarily focuses on expenses deductible on
tax returns. However, many of the examples it contains also qualify for FSA reimbursement.
Limited Purpose FSA
You should choose a Limited Purpose FSA instead of a Healthcare FSA if you or your spouse will be making or receiving contributions to a health savings account (HSA). To be eligible for HSA contributions, IRS rules require that your FSA coverage be limited to dental and vision care only. Our Limited Purpose FSA is designed to help you meet this IRS requirement. You can use it for expenses like those listed below.
- Braces
- Contact lenses, solutions
- Dental care (non-cosmetic)
- Dentures, adhesives
- Eyeglasses
- Laser eye surgery
- Orthodontia
- Over-the-counter (OTC) dental and vision products
- Vision care
A Limited Purpose FSA is required only for HSA contribution eligibility. If you or your spouse have an HSA that is no longer receiving contributions, you can use a Healthcare FSA with full coverage.
Dependent Care FSA
Choose a Dependent Care FSA if you pay for dependent care so you or your spouse, if married and filing jointly, can work, actively look for work, or attend school full-time. Examples that may qualify are listed below.
- Day care
- Before- and after-school care
- Day camps
- Daycare
- Nanny
- Nursery school
- Preschool
Qualified dependent care expenses are defined in Section 21 of the Internal Revenue Code. To qualify, the dependent must be a child under the age of 13 or a child, spouse, or another dependent who is physically or mentally incapable of selfcare and spends at least eight hours a day in your home. Other conditions may apply. IRS Publication 503 provides more details.