What is an FSA and how does it work?
A flexible spending account (FSA) is a great tool for helping you manage your health care budget. With an FSA, you have the ability to use pre‐tax dollars to pay for qualified medical or dependent care expenses.
You choose how much money to contribute to your FSA, within limits, and you choose what qualified expenses to spend your FSA funds on and when to spend them.
DID YOU KNOW…?
Some health care FSAs come with a rollover option allowing you to move up to $500 from the previous year’s FSA into your FSA for the current plan year. That will keep you from losing those unspent funds at the end of the year.
If you are unsure if your FSA offers the rollover feature, consult your benefits documentation and/or your employer’s benefits specialist.
Financial Advantages of FSAs
Contributions to an FSA are made pre-tax, reducing your overall taxable income.
Pay for hundreds of eligible expenses for tax-free purchase with your account funds, including prescriptions, doctor’s office copays, health insurance deductibles, coinsurance, some over-the-counter (OTC) medications, and much more.