FSA (Flexible Spending Account)
Think of it as your health care piggy bank! A pre-tax account where you can stash cash each year to cover out-of-pocket health care expenses. The best part? No taxes on this money! But there's a catch—you usually have to spend it within the plan year, so use it or lose it!
Detailed Explanation
An FSA can help you save money on eligible medical, dental, and vision expenses.
Practical Example
Sarah contributes to a Flexible Spending Account through her employer. This allows her to use pre-tax dollars to pay for things like contact lenses, over-the-counter medications with a prescription, and co-pays.
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