What does F mean in UNCLASSIFIED

Fsa stands for flexible spending account. It is a type of savings account which allows employees to set aside pre-tax income to use for eligible medical and dependent care expenses.

Employees as well as their spouses and dependents may benefit from having an Fsa. The funds in the Fsa are not taxed, so individuals can save money on their overall tax bill.

An employee can contribute money through payroll deductions or direct deposits made by their employer into the Fsa account. Typically, these contributions are deducted from the employee's paycheck before taxes are applied and deposited directly into their Fsa.

Eligible expenses include out-of-pocket costs associated with doctors' office visits, prescriptions drugs, eyeglasses, chiropractic care, orthodontia, nursing home care, and other qualified medical expenses. Dependent care related costs such as daycare or after school programs are also eligible for reimbursement through an Fsa.

Yes, there may be limits or restrictions depending upon the employee's particular plan. Generally speaking, funds must be used within a specific timeframe known as a “Grace Period” (typically 12 months) and unspent funds will be forfeited at that time unless otherwise specified in the specific rules of the plan administrator's policy.