What is a Flexible Spending Account?
A flexible spending account allows you to save money on health care expenses by paying with pre-tax dollars saved in a flexible spending account maintained through your employer. How it works: • You designate a percentage of your paycheck to be deposited into your pre-tax flexible spending account. • You submit receipts for your prescriptions, over-the-counter health products and co-payments to your account administrator. • Your expenses are reimbursed with pre-tax dollars from your flexible spending account. • You spend less out of pocket! Shop FSA.
A Flexible Spending Account, or FSA, is an employee benefit program that allows you to set aside money, on a pre-tax basis, for certain health care and dependent care expenses. That means YOU keep MORE of your MONEY. FSAFEDS offers three types of accounts: A Health Care FSA (HCFSA) is used to pay for eligible health care expenses that are not covered under your insurance plan, such as co-payments and over-the-counter medicines, such as Tylenol and Sudafed. It is sometimes referred to as a general purpose HCFSA A Limited Expense Health Care FSA (LEX HCFSA) is used in place of the general purpose Health Care FSA if the participant enrolled in a High Deductible Health Plan with a Health Savings Account (HSA). The Limited Expense HCFSA allows you to submit eligible dental and vision expenses only. A Dependent Care FSA (DCFSA) is used to pay for childcare or adult dependent care expenses that are necessary to allow you and your spouse, if married, to work, look for work or attend school ful
A flexible spending account is an account that you put money into on a pre-tax basis to help pay for certain out-of-pocket health care or dependent day care expenses not covered under a health care plan. Your contributions to the FSAs are deducted from your paycheck before taxes are taken out. By contributing on a pre-tax basis, you’re not taxed on the money that goes into the account. That means your taxable income is less which ultimately increases your take home pay.
