Flexible Spending Account (FSA) 2020

Lesson Progress:

A flexible spending account (FSA) has these features:

An FSA allows employees to be reimbursed for medical expenses.
Money is deducted from the employee’s paycheck to fund his or her FSA, and the contributions are tax deductible.
Withdrawals are not taxable if paying for qualified medical expenses of the employee or the employee’s family.
An FSA is a “use-it-or-lose-it” plan. This means that money in the account at the end of the plan year cannot be carried over to the next year.