What is a flexible spending account (FSA)?

A flexible spending account (FSA) is a type of health insurance policy available to people in California. It allows individuals to set aside pre-tax money for medical expenses that are not fully covered by health insurance. FSA funds can be used to pay for a variety of qualified expenses such as deductibles, copayments, dental work, eye care, prescription drugs, and more. An FSA is an employer-offered benefit for employees. An employer can choose to offer an FSA program to its employees, allowing them to decide how much to set aside from their pre-tax income. The money that employees put in their FSA goes into an account that can only be used to pay for qualified medical expenses. FSA funds do expire after a certain period of time. While the exact amount of time varies from state to state and by employer, FSA funds typically must be used within one calendar year or they will be forfeited. That means that it is important to use up the funds in your FSA before the end of the year in order to get the most out of them. For people in California, an FSA can be a great way to save money on medical expenses. With an FSA, individuals can put aside pre-tax money into an account to pay for medical expenses that are not covered by health insurance. It’s important to remember that FSA funds are limited and must be used within a certain amount of time, so it’s important to be aware of both the potential benefits and limitations of an FSA.

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What is a flexible spending account (FSA)?

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