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fsa an fsa or flexible spending account is a health care fund used to set aside pre-tax dollars for out-of-pocket health care expenses unlike an hsa which can only be used with a high deductible health plan or hdhp and fsa can be used with most any type of health plan hmo ppo etc the contributions you make to an fsa are taken from your paid before federal state or social security taxes are deducted this decreases your taxable income and increases your total spendable income or take-home pay and can result in potentially docHub savings so how does it work at the beginning of the plan year when you are enrolling in your benefit plans you must decide how much money you want to put in your fsa for the entire year there are limits the amount you designate for the year is taken out of your paycheck in equal installments each pay period and placed in your flexible spending account by your employer on the first day that your fsa becomes active for the plan year the value of the account i
