The account, which is also sometimes called a "flexible spending arrangement," lets you contribute a portion of your regular earnings before tax; employers also can contribute to employees’ FSAs. Distributions from the account must be used to reimburse the employee for qualified expenses related to...
A dependent-care FSA and a health-care FSA are both employer-sponsored accounts where workers can contribute pretax money. A dependent-care FSA can be used for qualified dependent care expenses for children under the age of 13 or for a spouse or relative who is unable to take care of them...
Flexible spending accounts (FSAs) allow employees to make tax-free contributions for various medical or dental expenses. Distributions are free, provided they are used for qualifiedmedical expenses. In most circumstances, you can use your FSA for non-cosmetic dental procedures. Key Takeaways In the...
Qualified Referral. A Qualified Referral is defined as a first purchase made on our Website by a person (a "Referred Customer") who arrives at our Website by clicking a Refer-a-Friend program link. You are limited to one Qualified Referral for each Referred Customer; in other words, addit...
HSAs and health care FSAs can both help you save for qualified medical expenses. HSAs may offer higher contribution limits and allow you to carry funds forward, but you're only eligible if you're enrolled in an HSA-eligible health plan. Health care FSAs have lower contribution limits and ...
Grace Period: A extended period of time at the end of the plan year that would allow participants extra time to incur expenses in order to use up the remaining balance in their FSA account. The grace period is 2.5 months long. Qualified Reservists: Certain employees who are qualified reservis...
2023 & 2024 flexible spending account (FSA) basics: pros, cons, maximum contribution, qualified medical expenses, carryover rule, vs HSAs
2 “IRS: Healthcare FSA reminder: Employees can contribute up to $3,300 in 2025; must elect every year,” IRS, 2024 3“26 CFR 601.602: Tax forms and instructions,” IRS 4“High Deductible Health Plan (HDHP),” HealthCare.gov 5 “What are Qualified Medical Expenses?,” U.S. Departme...
account designed specifically for medical expenses. To be eligible to open an HSA, you must be enrolled in a high-deductible health plan (HDHP). Contributions to an HSA can be made with pre-tax dollars, the funds grow tax-free, and withdrawals for qualified medical expenses are also tax-...
You can’t use your HSA/FSA to pay off non-medical expenses without a penalty, so keep good records and reimburse only the qualified expenses. » MORE: When is the best time to pay my credit card bill? Beware: Your medical expense may not qualify for HSA/FSA reimbursement While most ...