Flexible Spending Accounts (FSA)

What is Flexible Spending Accounts (FSA) ?

‘Flexible Spending Accounts’ or FSAs are the kinds of salary accounts in the USA, wherein, an employee can set aside a part of their income for any kind of predefined qualified expenses.

As the deductions are applied to the gross income, it is also tax-efficient. However, whatever amount not used up by the end of the year is forfeited, which is a disadvantage to the employee.

Hence, employees generally plan beforehand and enroll for FSA knowing that there might be some expenditure in the coming months. It helps them save taxes as well as have the extra money when in need.

More HR Terms

Competitive Advantage

What is Competitive Advantage?   ‘Competitive Advantage’ refers to the advantage a company has against the competition which helps it remain in the business. The

Bell Curve

What is Bell Curve ?    ‘Bell Curve’ is the term given for the graphical representation of a Gaussian distribution. It is named so since

Anti-nepotism Policy

What is Anti-nepotism Policy ?    The ‘Anti-nepotism Policy’ is the set of rules that ensure that employees can’t work with, or have any influence

Contact Us

Contact Us

We use cookies on our website to provide you with the best experience.
Take a look at our ‘privacy policy’