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Posted on 11-02-2016

Health FSAs are employer-established benefit plans.

A health flexible spending arrangement (FSA) allows employees to be reimbursed for medical expenses. FSAs are usually funded through voluntary salary reduction agreements with your employer. No employment or federal income taxes are deducted from your contribution and distributions from the plan for qualified medical expenses are tax free. For 2016 the contribution limit is $2550.

FSA accounts are used to pay for medical and dental expenses not paid for by insurance. Eyeglasses and eye examinations and eyecare products for the employee, spouse and dependents are allowable expenditures for FSA plans.

The amount in the FSA account must generally be used within the plan year or it is forfeited.

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