What is a Flexible Spending Account Plan (or FSA)?
An employee benefit program that allows you to set aside money, on a pre-tax basis, to pay for certain out-of-pocket health care and dependent care expenses. Because the money goes into your account(s) before federal income or Social Security taxes are withheld, you pay less in taxes, and have more disposable income. Your money is also exempt from state income taxes in most states.
