FSA

What is an FSA?

Hi, you may be wondering, what is an FSA? An Flexible Spending Account (FSA) is an employment based benefit that many employers offer. Employees can set aside a portion of their salary (pre-tax) that pays for qualified medical expenses. FSAs are called healthcare reimbursement accounts or cafeteria plans.

The main advantage of an FSA that it allows employees to pay for qualifying medical expenses with pre-tax dollars. This can save them money on their taxes. Due to FSA contributions being made with pre-tax dollars, withdrawals for qualified medical expenses are tax-free. FSA eligibility is an employee must be enrolled in an FSA-eligible health insurance plan. Annual FSA contribution limits are by employers and used money in an FSA account does not rolls over from year to year.

The two types of FSAs are the Health FSA and the Limited Purpose FSA. A Health FSA is pays for a wide range of qualified medical expenses like deductibles, copayments, prescriptions, and vision and dental care. A Limited Purpose FSA is usually used with a high-deductible health plan (HDHP) and only used to pay for dental and vision expenses.

A major drawback of an FSA is the "use it or lose it" rule. So, any used money at the end of the plan year is forfeited. This can cause a disadvantage to employees when there are unanticipated high healthcare expenses or there is unused money in the account. Also, an FSA cannot be used to pay for monthly insurance premiums.

So, an Flexible Spending Account (FSA) is an employment based benefit that many employers offer. Employees can set aside a portion of their salary (pre-tax) that pays for qualified medical expenses. FSAs do have annual contribution limits. FSAs provide tax savings when employees pay for qualifying medical expenses using pre-tax dollars. The two types of FSAs are the Health FSA and the Limited Purpose FSA. But, FSAs have a "use it or lose it" rule and can not be used to pay for monthly insurance premiums.

Looking for Health Insurance/ACA/Obamacare Plans?

We do not offer every plan available in your area. Currently we represent 23 organizations nationwide which offer 1,779 products nationwide. Please contact Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.

A non-government site hosted by Price Services Group, L.L.C., a health insurance agency

Price Services Group (L.L.C.) is NOT Endorsed by or Affiliated with Medicare or ANY Government Program.

We contract with multiple insurance carriers so we have numerous plan options available to you. However, we may not offer every plan available in your area. Also, keep in mind that while we may have multiple plan options available to you, we may not offer every plan available in your area. Any information we provide is limited to those plans we do offer.

Price Services Group, L.L.C. Copyright 2024 -- All Rights Reserved

Phone: (866) 648-1578 Email: info@priceservicesgroup.com