An FSA plan is a type of benefit plan under Section 125 of the IRS code that allows you to set aside money on a pre-tax basis to pay for certain medical and/or dependent care expenses that you and your eligible dependents incur.
The FSA plan allows you to pay for the balance(s) with pre-tax dollars.
There are two types of FSAs
• Health Care FSA
- This FSA is for health care expenses not paid by insurance, including co-payments, exams, deductibles, vision care and dental expenses.
• Dependent Care FSA
- This FSA is for dependent care expenses you incur to care for your eligible dependents, including daycare, afterschool care or elder care.
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