HR Glossary

Flexible Spending Account (FSA)

By Katie Milner October 31, 2019 No Comments

What is a Flexible Spending Account (FSA)? Definition below:

”A Flexible Spending Account (FSA) is an optional account offered to employees in which money is put aside to pay for certain healthcare costs.

Money in a Flexible Spending Account (FSA) is not taxed and can be used for out-of-pocket healthcare expenses, such as copayments. The amount permitted in an FSA is limited to $2,650 per year, and will be lost if not totally used within that year.

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Katie Milner

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