Flexible Spending Accounts
Flexible Spending Accounts (FSA) are IRS-approved tax-free accounts. They allow you to set aside a portion of your salary as pre-tax dollars to be used as reimbursement for certain health and dependent care expenses you and your family incur.
When you enroll in a FSA, you authorize your employer to make per-pay period deposits to your account(s) with salary dollars that have not been taxed. Then, as you incur eligible out-of-pocket expenses, you request tax-free withdrawals from the account(s) to reimburse yourself. There are two types of accounts: health care and dependent care. You may enroll in either one or both.