Yes, employees elect how much to contribute into the account at the beginning of each plan year. Then, the total annual amount is deducted from the employees’ paycheck equally throughout the year. Any employer contributions are also tax-free.
Articles in this section
- What is a Flexible Spending Account (FSA)?
- How much can I contribute to an FSA?
- What can I use my FSA funds for?
- How is my FSA funded?
- What does it mean to substantiate an expense?
- What are employer FSA substantiation requirements?
- How can I make sure my FSA expense is not declined?
- How can I use my FSA for Qualified Expenses?
- Is an FSA tax-free?
- Who can enroll in an FSA?