What is a FSA?
What is a Flexible Spending Account (FSA)? A Flexible Spending Account is an employee benefit provided to you by your employer. FSAs enable you to convert some of your taxable income to a similarly tax-free benefit. By electing to deposit a portion of your salary to a FSA, you are redirecting your money into a tax-free account used to pay qualified expenses that formerly were paid with after-tax income. The funds are exempt from Federal, State, and FICA taxes. You pay no tax on the funds deposited to the FSAs, nor do you owe taxes on the funds when they are paid to you. There are two Flexible Spending Accounts available to you: • Health Care FSA allows you to use tax-free funds to pay your and your familys medical, dental and vision care expenses not reimbursed under any other health plan coverage or claimed as a tax deduction. • Dependent Care FSA offers you an opportunity to pay dependent day care expenses for children under the age of 13 or day care expenses for disable dependents o
