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What to know about FSAs. Flexible spending accounts come only as part of a benefits package from an employer \u2014 you can't get one on your own \u2014 but the medical expenses you can use them for are the same as HSAs.
Are Flexible Spending Accounts worth it? Yes, as long as you have somewhat predictable medical expenses each year, and/or dependent care expenses. You can expect to save around 20- 25% in taxes on every dollar you put in. As your income rises, your savings increase.
From an employee perspective, one of the biggest advantages of participating in an FSA is the tax-free nature of the account. Employee and employer contributions are not included in an employee's gross income and qualified expenses are paid or reimbursed on a tax-free basis.
An arrangement through your employer that lets you pay for many out-of-pocket medical expenses with tax-free dollars. Allowed expenses include insurance copayments and deductibles, qualified prescription drugs, , and medical devices.
Any unused money in your FSA goes back to your employer once you leave your job. If you have a healthcare FSA, you could have the option to continue access to your funds through COBRA. But you can't use your FSA contributions to pay for health insurance premiums either through COBRA or in the private market.
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Con: You're afraid to lose money One option is an extension of two and a half months. The second is a carryover option of $500 into the new plan year. In 2015, 60% of employers offer the carryover option, according to the Society for Human Resources Management.

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