How do flexible spending accounts (FSA) work?
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UnitedHealthcare answered:By enrolling in a flexible spending account (FSA), you save money by reducing your taxable income. Here’s how it works:
1. Estimate your expenses for the year. Then decide how much money to set aside.
2. Next, enroll in the FSA when you enroll in your benefits.
3. When the benefit year starts, the money is divided by each paycheck and set aside into your FSA before taxes are taken out.
4. When you have expenses, you can use the money in your FSA to reimburse yourself. Some FSAs may come with a debit card to make it easy to pay. Check your employer’s benefit information for details.
The IRS may modify the list of eligible expenses from time to time, and your employer may limit coverage on certain eligible items. Be sure to review your plan documents for more information.
By enrolling in a flexible spending account (FSA), you save money by reducing your taxable income. Here’s how it works: 1. Estimate your expenses for the year. Then decide how much money to set aside. 2. Next, enroll in the FSA when you... More
