What is an FSA and how does it work?
Flexible spending accounts (FSA) are a great tool for helping you manage your health care budget. Flexible spending accounts give you 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 health care FSA, within limits, and you choose what qualified expenses to spend your FSA funds on and when to spend them.
FSA contribution limit for 2020:
DID YOU KNOW…?
Some health care flexible spending accounts come with a rollover options 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.
Make the Most of Your FSA
Financial Advantages of Flexible Spending Accounts
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.