What’s an FSA?

An FSA is an employer-sponsored benefit that helps you pay for eligible expenses with pre-tax dollars. Types include:

• Healthcare FSAs: Covers deductibles, co-pays, prescriptions, dental, vision, and more.
• Dependent Care FSAs: Pays for childcare or eldercare.
• Premium Reimbursement FSAs: Offsets insurance premiums.
• Adoption Assistance FSAs: Supports adoption-related costs.

How It Works

During your company’s open enrollment, you’ll estimate your out-of-pocket expenses for the upcoming year. Pick an amount—keep it conservative and check what qualifies—then watch it get deducted evenly from your paychecks, tax-free. Spend it with a handy debit card at the point of service or submit receipts for reimbursement. Bonus: Some plans let you roll over up to $500 of unused funds!

Why Use an FSA?

Simple: it saves you money. Pre-tax contributions cut your federal, state, Social Security, and Medicare taxes, meaning you could save 15% to 40% of what you put in, depending on your income. Plus, it’s a smart way to budget for medical or dependent care costs.