FSA (Flexible Spending Account)
An employer account that lets you pay medical or dependent-care costs with pre-tax dollars.
What does fsa mean?
An FSA lowers your taxable income on eligible expenses, but most funds follow a "use-it-or-lose-it" rule within the plan year. Unlike an HSA, it isn’t portable and generally can’t be invested.
Put it to use
Healthcare Flexible Spending Account Tax Savings Calculator Use this calculator to see how a Healthcare Flexible Spening Account (Sectiion 125 Plan) can save you money on your income taxes. Flexible Giving Account Calculator Use this calculator to see how participating in a Flexible Giving Account (FGA) can help you pay less tax, with your charitable giving.
Related terms
FSA — frequently asked
What is the difference between an FSA and an HSA?
Both let you spend pre-tax money on health costs, but an HSA requires a high-deductible plan, rolls over and is yours forever; an FSA is employer-owned, usually “use it or lose it,” and does not require a specific plan.
Do FSA funds roll over each year?
Generally no — most FSAs are use-it-or-lose-it, though employers may offer a small carryover or a short grace period. Plan contributions carefully so you do not forfeit unspent money at year-end.