Keyword Analysis & Research: fsa

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What does FSA stand for?

What Is a Flexible Spending Account (FSA)? A flexible spending account (FSA) is a type of savings account that provides the account holder with specific tax advantages. An FSA, sometimes called a “flexible spending arrangement,” can be set up by an employer for employees.

What are the benefits of having a FSA?

The main benefit of an FSA is that the money set aside in the account is pretax, thus reducing the amount of our income subject to taxes. For someone in the 28% federal tax bracket, this income reduction means saving $280 in federal taxes for every $1,000 spent on dependent care with an FSA.

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