An FSA is a tool that may help employees manage their health care budget. Here’s how a health and medical expense FSA works: An FSA is not a savings account. If you leave your job, you can’t take your FSA with you.
Can I enroll in a health plan and sign up for an FSA?
You can enroll in a health plan and sign up for an FSA during your organization’s annual enrollment period. It pays to be strategic. Because of the tax savings on contributions, you can save an average of 30 percent 1 on qualified medical expenses, including but not limited to: Ready to shop?
Can FSA funds be used for medical expenses?
FSA funds can be used for qualified medical expenses. As of 2011, the ACA prohibited the purchase of over-the-counter medications with FSA funds, unless a doctor wrote a prescription for them. But Section 4402 of the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act changed that.
