- A Flexible Spending Account (also known as a flexible spending arrangement) is a special account you put money into that you use to pay for certain out-of-pocket health care costs.
- You don’t pay taxes on this money. This means you’ll save an amount equal to the taxes you would have paid on the money you set aside.
- You can use funds in your FSA to pay for certain medical expenses for you, your spouse if you’re married, and your dependents.
Learn about Flexible Spending Accounts
- For details about how your company’s FSA, including how to sign up, ask your employer.
- All of your FSA funds for the entire year are available January 1st.
- USE IT OR LOSE IT: FSA funds usually expire by Dec 31st or by March 15th.
- You may be able to carry $500 of unused FSA funds from the previous year depending on your employer.
- You have to be enrolled in a high-deductible plan to be eligible for a health savings account.
- HSA funds are accrued throughout the calendar year.
- An individual can contribute up to $3,350 a year, and sometimes your employer will make a contribution to the account, just like with a 401(k).
- FSA/HSA funds can be used to purchase prescription eyewear and/or frames, including prescription sunglasses.
- FSA/HSA funds can be used whether you have vision insurance or not.