What is Flexible Spending Account?
Is it just work on the medical expenses, can someone explain more details, Thank You.
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medical expenses. I’ve attached links as to what qualifies.
It is an account to be used for medical expenses.
You have money deducted from your paycheck. No taxes are deducted from that money. So if your paycheck is $2,000 but you have $50 deducted for your FSA you pay taxes on only $1,950.
To get the money you have to spend it on qualifying expenses. including:
+ Co-pays and deductibles on your medical services.
+ Prescription drug co-pays
+ Eyeglasses and contact lenses
+ Over the counter medications (e. g. aspirin) and medical supplies (e. g. bandages)
Check with your employer and/or the company that administers your FSA for more details.
The downside is that it is “use it or lose it”. If you have $600 per year deducted but only have $570 in expenses that year you lose the other $30. But if you watch your account you can stock up on Band-Aids and Tylenol at the end of the year so you don’t lose that.