Glossary

Flexible Spending Account

Abbreviation: FSA

An arrangement through your employer that lets you pay for many out-of-pocket medical expenses with tax-free dollars. Allowed expenses include insurance copayments and deductibles, qualified prescription drugs, insulin, and medical devices.

You decide how much to put in your FSA, up to a limit set by your employer. You aren't taxed on this money.

More about this topic

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