PREVIOUS QUESTION:

 

NEXT QUESTION:

 

What’s a flexible spending account (FSA)?

ANSWER

An FSA is a type of account that may help you save money on health care expenses and taxes. The money that goes into it is tax-free. Generally, you won't pay taxes on anything you spend from an FSA as long as the money is used to pay for qualified medical expenses.

SOURCES:

Forbes.com: "Comparing Health Savings And Flexible Spending Accounts."

Kiplinger's Personal Finance, April 2013: "FAQs About Health Savings Accounts."

Creighton.edu: "FSAs, HSAs and Limited Purpose FSAs -- What's Right For You?"

American Medical Association: "Health Savings Accounts."

Healthcare.gov: "Flexible Spending Account."

Reviewed by Sarah Goodell on February 16, 2018

SOURCES:

Forbes.com: "Comparing Health Savings And Flexible Spending Accounts."

Kiplinger's Personal Finance, April 2013: "FAQs About Health Savings Accounts."

Creighton.edu: "FSAs, HSAs and Limited Purpose FSAs -- What's Right For You?"

American Medical Association: "Health Savings Accounts."

Healthcare.gov: "Flexible Spending Account."

Reviewed by Sarah Goodell on February 16, 2018

NEXT QUESTION:

How is a flexible spending account (FSA) set up and funded?

WAS THIS ANSWER HELPFUL

THIS TOOL DOES NOT PROVIDE MEDICAL ADVICE. It is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional medical advice, diagnosis or treatment and should not be relied on to make decisions about your health. Never ignore professional medical advice in seeking treatment because of something you have read on the WebMD Site. If you think you may have a medical emergency, immediately call your doctor or dial 911.

    This tool does not provide medical advice. See additional information.

    Other Answers On: