Understanding a Healthcare Reimbursement Account (2010)

[WorkingAtDuke]

Thanks for posing your question! You're right, there is a 15 percent tax, but with the case of Blue Devil, his taxes also include a 7.56 percent FICA tax and about 8 percent for North Carolina state tax. All those taxes are common among Duke employees. After all the math is done, Blue Devil is left with about $300 in savings.

[johnpfay]

Someone's got to check the math on this video.

$6k taxes on $40k income = 15% tax rate

$5.7k taxes on $39 = 14.5% tax rate

Blue Devil really only saves $150 on taxes by contributing $1000, not $300 as the video shows...