A Health Care Flexible Spending Arrangement (FSA) is an employer sponsored benefit
that enables employees to set aside pre-tax dollars out of their paycheck to
pay for eligible health care expenses. Monies put into the plan avoid both
Federal Income Tax and FICA. The average savings is about 25-30%.
Participant Tax Savings Example
Common eligible expenses are prescription and office visit copays; vision
expense, dental work, orthodontia and expenses that are applied to medical plan
deductibles. Expenses that are for one’s general well-being, cosmetic in nature
or not medically necessary are not eligible.
List of Eligible and Ineligible Expenses