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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.

Updated over 3 months ago

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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