HealthEquity does not provide legal, tax or financial advice. Always consult a professional when making life-changing decisions.
*Estimated tax savings are based on a $2,500 contribution and a 20% effective tax rate, including applicable state and federal income taxes. Actual tax savings will vary based on your specific tax situation.
**DCFSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize FSA funds as tax deductible with very few exceptions. Please consult a tax advisor regarding your state’s specific rules.
^Chart for illustration purposes only. Actual savings will vary based on your unique tax situation.