How does a Flexible Spending Account (FSA) work?
The Unreimbursed Medical and Dependent Care Spending Accounts are a tax-advantaged way to pay for out-of-pocket health care expenses and work-related daycare expenses. This benefit allows you to reimburse yourself for eligible expenses with "pretax" dollars, which means that you get a tax deduction for these expenses before you ever file your tax return. You don't pay federal income or Social Security taxes on this money, and, in most states, you don't pay state taxes either. Learn more...