How it works

• FSAs are usually funded through voluntary salary reduction agreements with the employer
• No employment or federal income taxes are deducted from your contribution
• The employer may also contribute

Key benefits of FSAs

• Contributions made by the employer can be excluded from the gross income of the employee
• No employment or federal income taxes are deducted from the contributions

• Withdrawals may be tax-free if you pay qualified medical expenses
• You can use funds from the account to pay qualified medical expenses