Flexible spending accounts (FSA)provide employees with the option of setting aside pretax income to pay for out of pocket medical expenses. Employees must submit claims for these expenses and are reimbursed from their spending accounts. The drawback is that the amount set aside must be spent within one year.

Question

Quizplus · Accepted Answer

Flexible Spending Accounts (FSAs) allow employees to set aside money from their paycheck before taxes to use for eligible medical expenses. However, funds in an FSA typically must be used within the plan year, with some plans offering a short grace period or allowing a small amount to be carried over into the next year, but the general rule is "use it or lose it" within one year.

Flexible Spending Accounts (FSA)provide Employees with the Option of Setting