A flexible spending account (FSA) lets you set aside money, tax free, from your paycheck to cover medical bills that aren’t covered by health insurance. That includes:
For 2018, how much of your salary can you contribute tax-free to a health FSA?
If you and your spouse both work, you can both have health FSAs.
Your employer can also contribute to your health FSA account.
You can use your health FSA to pay for qualified expenses for yourself, your spouse, and your children up to what age?
You can use your FSA to pay your health insurance premiums.
You can use your health FSA to pay for over-the-counter drugs, such as cold medicines and pain relievers.
You can’t have a health FSA if you’re self-employed.
You can have both a regular health FSA and a Health Savings Account (HSA) at work.
You have to report your health FSA contributions on your income tax return.
You can begin making withdrawals from your FSA at the start of the plan year, even if you don’t have that much money in the account yet.
What happens if you don’t spend all the money in your account by the end of the year?