Learn About the Affordable Care Act

Flexible Spending Account

A Flexible Spending Account (FSA) lets employees and their employers put aside money to spend on health care or dependent care. An FSA is a way to spend less on taxes. Things you should know about FSA's:

  1. Beginning in 2013, you will only be able to put $2,500 a year into an FSA.
  2. An FSA can only pay for qualified medical expenses not covered by health insurance. Qualified medical expenses include doctor and dental visits and prescriptions.
  3. An FSA can also pay for dependent care for children or adults.
  4. You must use your FSA money within 2 1/2 months after the end of the year or the money will be lost.
  5. Your employer may contribute money to your FSA.
  6. People with a Health Savings Account (HSA) may only have a dependent care FSA or a limited health care FSA that pays for services such as dental and vision.

Have a question?

Visit our FAQ page to view common questions and answers.