Health Insurance

What’s a flexible spending account?

Similar to an HSA, the flexible spending account allows consumers to set aside money in an account to be used during the plan year, plus two and a half months free from payroll taxes, to be used for medical expenses. The money must be used during that time, and any unused funds can be used for future plan administrative costs, or given back to the employee as taxable income. The maximum allowed per year in contributions is $5,000 per plan year and will move to $2,500 in 2013.


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