A Flexible Spending Account (FSA) is an account you can use to pay for certain out-of-pocket health care costs with pre-tax dollars. You can use an FSA to pay for expenses like insurance copayments and deductibles, qualified prescription drugs, insulin, and medical devices. You decide how much to put in an FSA, up to a limit set by your employer. You arent taxed on this money, which means youll save an amount equal to the taxes you would have paid on the money you set aside. Employers may make contributions to your FSA, but they aren’t required to. With an FSA, you submit a claim to the FSA (through your employer) with proof of the medical expense and a statement that it hasnt been covered by your plan. Then, you’ll get reimbursed for your costs. If money is left at the end of the year, the employer can offer one of two options: you get 2.5 more months to spend the left-over money, or you can carry over up to $500 to spend the next plan year. To use an FSA, you usually sign up for it once a year during open enrollment.