Common questions about Flexible Spending Accounts:
What is a Flexible Spending Account?
A Flexible Spending Account (FSA) is an optional benefit plan offered by many U.S. employers that allows you to set aside part of your pre-tax earnings to pay for qualifying healthcare expenses. You might already be saving on eligible expenses like prescriptions, eyewear and other over-the-counter products.
How does an FSA save me money?
The money you contribute to your flexible spending account is taken out of your paycheck before taxes are taken out. In effect, you lower your taxable income for tax savings. The “pretax funds” in your FSA allow you to pay for qualifying healthcare expenses that are not covered by your health plan, such as doctor visit co-pays, prescriptions, dental expenses, and more.
Can over-the-counter purchases
like Depend® products be covered by
In addition to standard healthcare expenses, you can buy aspirin, cough medicine and many other over-the-counter items with FSA funds. Now Depend® products have been added to the list of FSA-qualified products.
Flexible Spending Accounts not available in Canada.
When can I sign up for an FSA?
FSAs are offered through employee benefit programs. Check with your employer's benefits department for more details.
How do I pay for healthcare expenses with my FSA funds?
If your plan provides a debit card, that's the easiest way to access your FSA funds. Some plans require that you to submit a claim to receive reimbursement from your FSA account. Check with your plan administrator for details on your FSA account.