What is a Flexible Spending Account (FSA), and how can one help you?
A Flexible Spending Account is an account you create with money from your salary before taxes are withheld. It saves you money by reducing the amount of income you’re paying taxes on–you are not paying taxes on money set aside for health and dependent care expenses.
An FSA lets you set as much as $5,000 aside for anticipated health and dependent care expenses. A Health Care FSA can cover everything from acupuncture treatment to a smoking cessation program. A Dependent Care FSA covers such matters as day care and housekeeper expenses. It’s important to remember that with an FSA, you use it or you lose it. You have a total of 14½ months to use your account from the effective date of enrollment.
For more information visit: https://www.fsafeds.com/fsafeds/index.asp