Flexible Spending Account

A Flexible Spending Account (FSA) is an employer owned account that lets you set aside pretax dollars (which lowers your taxable income) to pay for eligible out-of-pocket expenses.
There are three types of FSAs:
1. Healthcare FSA – Can be used to pay eligible medical, dental, orthodontia and vision expenses.
2. Limited Purpose FSA – Can be used in tandem with an HSA to pay eligible dental, orthodontia and vision expenses.
3. Dependent Care – Can be used to pay eligible expenses for childcare, eldercare or care for a disabled dependent.

Note: If you are participating in the Health Savings Account, IRS guidelines state you are not permitted to enroll in the traditional Health FSA program, unless it on a limited purpose basis.