Flexible Spending Accounts (FSAs)

Flexible Spending Accounts (FSAs) are special accounts that let employees set aside pre-tax money from their paychecks for certain expenses, like medical costs or childcare. This reduces your taxable income, which can save you money on taxes. FSAs are employer-sponsored, meaning your workplace offers them. However, the money usually must be used within the plan year, or it may be lost. You can use the funds for qualified expenses, making it easier to manage out-of-pocket costs. Overall, FSAs can help you budget for essential expenses while benefiting from tax savings.