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Glossary
A flexible spending account (FSA) is an account set up by an employer for an employee to contribute to pre-tax.
A flexible spending account (FSA) is set up for an employee by an employer. The employer owns the account, but the employee makes their own pre-tax contributions, and decides which qualified medical expenses (opens in new tab) to pay with it.
FSA dollars can be spent on everything from copays (opens in new tab) to over-the-counter drugs to medical supplies to acupuncture.
Important note: These contributions lapse at the end of each calendar year, so it’s important for employees to only put in money they plan to use.