A flexible spending account allows an employee to set up a pre-tax account into which a part of their pay is deposited with their employer to be used to pay for child care and medical expenses.

Question

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A flexible spending account is an employer-sponsored benefit that allows employees to use pre-tax dollars to pay for eligible expenses, such as medical and dependent care expenses. By contributing to an FSA, employees can reduce their taxable income and save money on out-of-pocket expenses.

A Flexible Spending Account Allows an Employee to Set Up