What Employees Need to Know About Flexible Spending Accounts
It's time for employees to take control of their finances through the benefits offered at HR Service Partners! A flexible spending account (FSA) allows employees to stretch their benefits dollars and pay expenses with pre-tax dollars. The best part? It's just as convenient as using a debit card. What is an FSA? With an FSA, an employee can deduct a portion of their regular earnings ( up to $2850 for 2022 from the IRS ) from their paycheck every pay period and designate that those funds be used for eligible medical and dental healthcare-related services. Amounts deposited to an FSA are non-taxable income and offer immediate tax savings. Funds in an FSA can be utilized during a plan year for a range of pre-approved medical expenses and services. FSA account types include: Healthcare FSA: this FSA provides reimbursement for out-of-pocket medical expenses. Limited Purpose Medical FSA: this FSA works with a qualified high deductible health plan (HDHP) and Health Saving Account (...