Flexible Spending Account (FSA)
Flexible Spending Accounts (FSA), also known as flexible spending arrangements, are arrangements between employers and employees allowing employees to pay for out-of-pocket medical expenses with tax-free funds set aside from their salary.
Funds left over at the end of the year may either roll over for two and a half months, or usually up to $550 can be carried over into the next plan year. Employees decide how much to place into their FSA, up to a limit set by the employer.
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