IRS Flexible Spending Account

A Flexible Spending Account Benefit qualifies under Code Section 125 of the IRS. IRS Section 125 was created to make benefits more affordable.

A flexible spending account makes life more affordable for growing families in particular, because so many different expenses qualify for pre-tax savings such as:

Infertility treatments
Medical expenses associated with pregnancy

Child care

Read below to learn more about the two main types of accounts, Flexible Spending Account rules, how an FSA bests tax deduction hurdles, and how an FSA saves you and your employer money.

Flexible Spending Account (FSA) Key Topics

Health Care FSA

Health Care Flexible Spending Account (FSA) – beat medical and dental deduction hurdles, cut costs for Prescription Drugs, Fertility Treatment, Prenatal Care, Well Baby Care, Premature Baby in NICU, and Special Needs Children

Dependent Care FSA

Using the IRS Child Care Tax Credit? Get bigger Tax Savings and Deductions for using a Dependent Care Flexible Spending Account FSA for your childcare, daycare expenses.

Rules & Regulations

How a Flexible Spending Account (FSA) works. The "Use it or Lose it Rule". Changing your plan elections. Qualifying life event. Impact on Social Security Benefits.

Payroll Deduction Savings

Pre tax medical premiums and other contributions lower the amount of payroll taxes (FICA) paid by employers and employees. The amount of savings depends upon reported W2 income, which of course is lowered by these deductions.

Interrelated

IRS Flexible Spending Account

Flexible Spending Account (FSA) Key Topics