Flexible Spending Account
Flexible Spending Account
A Medical Flexible Spending Account (FSA) is an IRS-approved, tax-exempt account that saves you money on eligible medical expenses. The money that you choose to deposit each pay period into your flexible spending account is deducted from your gross pay before taxes are calculated. These funds are exempt from both federal income and Social Security and Medicare taxes. Then, as you incur eligible expenses, you may request withdrawals from your account to reimburse yourself. Establishing a Medical Expense FSA will save valuable tax dollars on eligible medical expenses.
You estimate your family's annual health expenses and enroll, electing the amount to be withheld for the plan year. This amount must be between $240 (minimum) and $2,400 (maximum).
The amount you choose is deducted evenly from your paycheck throughout the year. To receive funds from your FSA, you submit a claim form with your bills to the administrator. You receive a check for reimbursement OR direct deposit reimbursement, whichever you choose.
