How do Flexible Spending Accounts (FSAs) work?

Flexible Spending Accounts (FSAs) are a benefit offered by many employers, and are funded with employees’ pre-tax dollars. FSAs help Americans pay for a variety of out-of-pocket health care costs such as co-pays, deductibles, prescription drugs, vision care, hearing aids, and dental services – including orthodontic treatment. FSAs are limited to $2,600 per year as of 2017.