A Health Care Flexible Spending Account (FSA) is a type of employee benefits plan that allows employees to designate a specified amount of pre-tax dollars to go towards plan-approved medical expenses. Some of these expenses include dental, vision, medical exams, deductibles, co-pays, and prescription costs. The money usually covers out-of-pocket costs, and any money that an employee contributes will always be tax-free. Since this money is tax-free, employees will also be expected to save an amount equal to the taxes you would have paid on the saved funds. A special FSA debit card is usually issued in order to give employees immediate access to any funds in their Health Savings Account (HSA).
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