FSAs
Flexible Spending Account (FSA) is an employer-established, tax-advantaged account that allows employees to pay for eligible out-of-pocket healthcare or dependent care expenses with pre-tax dollars. Funds are contributed through salary reductions and reimbursed to the employee through a claims process or a debit card. The account is owned by the employee but administered by the employer or a plan administrator.
FSAs come in several forms. A Healthcare FSA covers eligible medical, dental, and vision expenses not paid
Eligibility and enrollment: FSAs are offered by employers as part of benefits packages. Employees enroll during
Use rules and limits: Reimbursements are for IRS-defined eligible expenses. Plan administrators may require receipts for
Tax treatment and portability: FSA contributions are exempt from federal income and payroll taxes, and reimbursements