What is an FSA program?
An FSA (Flexible Spending Account) is an account funded by employee (sometimes employer) salary deferral elections, for the purpose of reimbursing expenses on pre-tax basis. There are two types of expenses that may be reimbursed under an FSA program; health/dental/vision and dependent day care. The employer sets a maximum contribution amount at the beginning of each play year, and participants elect to contribute an amount up to that maximum.