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What is a Flexible Spending Account (FSA)?

FSAs are tax-advantaged accounts that can be used for medical expenses only; they're sometimes also called flexible spending accounts. They’re different from health savings accounts, or HSAs, in that the money can be spent only in the calendar year it’s contributed.

When is the deadline to use money in your FSA account?

As the year comes to a close, the deadline to use money in your FSA account, January 1, rapidly approaches. Since most FSA accounts abide by a "use it or lose it" rule, many account holders face potential forfeiture of their pre-taxed contributions.

What is a FSA & how does it work?

They’re different from health savings accounts, or HSAs, in that the money can be spent only in the calendar year it’s contributed. In other words, FSA funds are use it or lose it, and any unused money left over at the end of the year is no longer yours.

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