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What is a Flexible Spending Arrangement (FSA)?

A Flexible Spending Arrangement (FSA) is a special account that lets you set aside money from your paycheck before taxes to pay for eligible medical expenses. FSAs are usually offered through an employer.

Sammi Lane avatar
Written by Sammi Lane
Updated today

How an FSA works

  • You choose how much money to contribute for the year, and your employer deducts that amount from your paycheck before taxes.

  • You can use your FSA funds for qualified expenses such as doctor visits, prescriptions, dental care, and vision costs.

  • You typically access your funds with an FSA debit card provided by your employer or plan administrator.

Important details

  • FSAs are owned and managed by your employer, not you.

  • You usually must use the money within the plan year, though some employers allow a small rollover or grace period.

  • You can’t keep your FSA if you leave your job.

FSA vs. HSA

Unlike a Health Savings Account (HSA), an FSA is tied to your employer and doesn’t carry over indefinitely, but both help you save on medical costs by using pre-tax dollars.

Need help?

If you’re unsure how your employer’s FSA works or what expenses are covered, contact your employer’s benefits department or call our Consumer Advocate team at 855-772-2663, Monday–Friday, 6am–4pm PT.

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