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Financial Terms / E - F / Flexible spending account (FSA)

Flexible spending account (FSA)

A Flexible spending account (FSA) is a form of savings account that you can use to pay for some out-of-pocket medical expenses. It provides specific tax advantages and can be established by a corporation for its employees.

The cash withdrawn from this account for those out-of-pocket expenses is tax-free; hence, you save tax equal to the costs.

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