Flexible Spending Account (FSA) Calculator

Important Notice: the Principal Financial Group^® will not capture, record, nor use for its own commercial purposes the data elements entered by you into this calculator

Should I enroll in my Company's Flexible Spending Account Program?

The following worksheet will help you estimate your potential tax savings by signing up for a Flexible Spending Account.

* Required

Annual Income

*Annual Income:

Health Care Reimbursement Account

Amount of your medical plan deductible:	$

Average medical co-insurance you pay each year and out of pocket medical expenses:	$

Amount of your dental plan deductible and out of pocket dental expenses:	$

Amount you pay for eyeglasses, contact lenses, contact lens solution and vision exams each year:	$

Amount you pay for orthodontia expenses each year:	$

Amount you spend on prescription drugs not covered by insurance:	$

Other yearly eligible expenses for which you might pay:	$

Dependent Care Reimbursement Account

Amount of day care you normally pay annually:	$
(For children under the age of 13, or other dependents [spouse or similar member] living in your home who require daycare or adult day care. These could include Daycare Center, Babysitter and/or Nanny. The current maximum amount allowed under IRS guidelines is $5,000.)

Results

Annual Medical Contribution:	$
Annual Dependent Care Contribution:	$

	With Spending Account	Without Spending Account
Annual Income:	$	$
Estimated Health Care Expenses:	$	$
Estimated Dependent Care Expenses:	$	$
Taxable Income:	$	$
Net Pay:	$	$

*Your tax savings will be approximately $ annually by using a Health Care Spending Account.

*Your tax savings will be approximately $ annually by using a Dependent Care Spending Account.

*Assumes 15% federal income tax, 5% state income tax and 7.65% Social Security tax.

For most individuals, the tax savings from using a Health Care Reimbursement Account will significantly exceed the tax credit allowed if you claimed these expenses on your income tax form. Without an FSA, you can only deduct health care expenses that exceed 7.5% of your Adjusted Gross Income on your income tax form. Because FSAs are tax free from the first dollar you do not have to meet the 7.5% minimum in order to receive the tax advantage.

Disclaimer: This publication is intended to provide accurate and authoritative information in regard to the subject matter covered. The accuracy of the information is not guaranteed and is provided with the understanding that The Principal is not rendering legal accounting, or tax advice. While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is not a marketing opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.

EC 1898
07/2008