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A flexible spending account (FSA), also known as a flexible spending arrangement, is one of a number of tax-advantaged financial accounts that can be set up through a cafeteria plan of an employer in the United States.
A Flexible Spending Account (FSA) is often the backbone of a company's employee benefit plan. Why? FSAs are easy to set up, easy to use and they save money. Both employers and employees save on out-of-pocket costs for health care and dependent day care by using pre-tax dollars to pay for them.