Consumer-Directed Health Plans 101:

4. Flexible Spending Accounts (FSAs)

A healthcare FSA is another type of reimbursement account offered by employers. It allows you to set aside money from your paycheck before taxes to pay for many of your family's healthcare costs during the year. You decide how much to set aside in your FSA. Because you’re spending pre-tax money on healthcare, you’ll pay fewer taxes and end up with a higher portion of your salary to spend on other things.

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Last updated 2/1/2016