What is a Flexible Spending Account (FSA)?

A flexible spending account (FSA) is an employer offered benefit, which lets you set aside tax-free money so you can save on qualified health purchases including OTC products, prescriptions, vision health essentials, and much more. FSAs are employer-sponsored and are owned by your employer, so you’re only eligible to participate if your employer offers the option. Some FSA eligible items include KT Tape, most sunscreen, and copays. The IRS decides which items are eligible under FSA plans in general but your employer may choose to limit exactly what your FSA may be used on. Account holders can either use an FSA card for their purchase or use their own debit card and submit receipts with a claim to their administrator for reimbursement.