What is a Flexible Savings Account (FSA)?
It is a separate benefit plan that allows your employees to direct a part of their pay, tax free, into a special account that they can use throughout the year to reimburse themselves for eligible out-of-pocket expenses. The employer saves money on as a result of reduced FICA and Social Security matching payments. There are three types of FSAs and they include: Health Care FSA for uncovered out of pocket medical expenses; Dependent Care FSA for work related child and adult care; Transportation FSA for job-related parking and public transportation reimbursement.
Related Questions
- Im on the HDHP and participate in the Health Savings Account (HSA). Can I also participate in the Health Care Flexible Spending Account (FSA) through WageWorks?
- Can a Health Reimbursement Arrangement (HRA) or Flexible Spending Account (FSA) also be offered along with a Health Savings Account?
- WHAT IS THE DIFFERENCE BETWEEN A FLEXIBLE SPENDING ACCOUNT (FSA) AND A HEALTH SAVINGS ACCOUNT (HSA)?
