The Financial Benefits of an HSA & FSA
The Savings Power of an HSA
​Example: The Smith family, earning $7,500 per month, has chosen to contribute a total of $6,900 to their HSA this plan year. Let’s examine how this impacts their take-home pay.​
With a Medical HSA
Combined Gross Monthly Salary $7,500
Medical HSA Contribution: $575
Net Pay: $4,501
Taxable Income: $6,925
Post-Tax HSA Expenses: $0
Taxes: $2,424
Total Monthly Income: $4,501
Without a Medical HSA
Combined Gross Monthly Salary $7,500
Medical HSA Contribution: $0
Net Pay: $4,875
Taxable Income: $7,500
Post-Tax HSA Expenses: $575
Taxes: $2,625
Total Monthly Income: $4,300
With an HSA, the Smith's save $201/month and $2,412/year.
The Savings Power of an FSA
​Example: The Smith family, with both parents working, has one child in school and the other in home daycare. Earning $7,500 per month and claiming four tax exemptions, they can see a significant impact on their take-home pay by utilizing a Medical FSA and Dependent Care FSA. Let's take a closer look at their expenses.
With a Medical/Dependent Care FSA
Combined Gross Monthly Salary $7,500
Medical FSA Contribution: $208
Taxes: $2,407
Dependent Care FSA Contribution: $416
Net Pay: $4,469
Taxable Income: $6,876
Post-Tax Expenses Medical: $0
Dependent Care: $0
Total Monthly Income: $4,469
Without a Medical/Dependent Care FSA
Combined Gross Monthly Salary $7,500
Medical FSA Contribution: $0
Taxes: $2,625
Dependent Care FSA Contribution: $0
Net Pay: $4,875
Taxable Income: $7,500
Post-Tax Expenses Medical: $208
Dependent Care: $416
Total Monthly Income: $4,251
With these FSA's, the Smith's save $218/month and $2,616/year