What Is a Flexible Spending Account? - The White Coat Investor - Basics

A Flexible Spending Account (FSA) is an account sponsored by your employer and is set up as part of your overall benefits package. All FSA plans work in different ways, so if you have questions about whether your employer offers one or how it works, you'll want to contact your HR department.

Typically, an FSA is offered by your employer when they also offer health insurance as part of your overall compensation. But you don't necessarily need to be on your employer's healthcare plan to participate in an FSA. The maximum contribution limits are set by the IRS and change each year. For 2022, you can contribute $2,850 per year per employer. If you're married, your spouse can also contribute $2,850 with their employer as well.

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