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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 simply a way for you to set money aside from each paycheck to use on Eligible Expenses not covered by your health plan and Dependent Daycare Fees. Some examples of these expenses are: Office visit co-pays, Rx co-pays, Medical supplies (diabetic testing strips), some Over-the-Counter Medicines and much more.