Employer-provided spending accounts:

Question

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Employer-provided spending accounts, such as flexible spending accounts (FSAs) and health savings accounts (HSAs), allow employees to set aside pre-tax dollars for qualifying expenses. These expenses can include medical expenses, dependent care expenses, and transportation expenses. The expenses must be substantiated with receipts, but they can be treated as tax-free reductions in the employee's salary, which can result in significant tax savings. While some employer-provided spending accounts may also allow for vacation savings, this is not a common feature of these accounts.

Employer-Provided Spending Accounts