Do you need a flexible spending account for health care?

A flexible spending account (FSA) can be a great way to save money on health care expenses. So if your employer offers an FSA as an optional employee benefit, you should think about signing up. With a health care FSA, you can use tax-free dollars to pay for eligible medical expenses, helping you keep more of your hard-earned paycheck.

What is a Flexible Spending Account (FSA)?

A flexible spending account, or FSA, is a tax-advantaged account offered by your employer that allows you to pay for medical expenses or dependent care. Depending on the extent of your health care or dependent care costs, an FSA can help you save a lot of money on taxes, particularly since the list of eligible expenses has expanded in recent years.

Are flexible spending accounts right for You?

There’s no one-size-fits-all approach when it comes to flexible spending accounts. To decide if an FSA is right for you, forecast upcoming health and dependent care expenses for the year, plus general drugstore-item spending, and become familiar with the FSA plans being offered.