A Few Important Things You Should Know About Flexible Spending Accounts.

• What is a Flexible Spending Account (FSA)?
• FSAs are tax-advantaged health spending accounts established by employers. These accounts are used to reimburse employees for qualified medical expenses not covered by their health plan.
• How are contributions made to the account?
• FSAs are funded through salary withholdings (payroll deductions).
• Is there an annual contribution limit?
• There is no legal limit to the amount of money that can be contributed to an FSA in any given year, though most employers impose limits on the accounts. The contribution amount must be determined during the open enrollment period. An employee may not change this amount or drop out of the plan during the year unless they experience a change of family status (e.g. have a baby, get married, etc...).
• Who owns the account?
• The money in an FSA does not roll over from year to year. Any funds not spent by the end of the year go back to the employer. In other words, use it or you lose it.