flexible spending account (FSA)

A flexible spending account (FSA) is a benefit offered by employers that allows employees to take money out of their pay before taxes, put it into an account, and then pay for some specific things with that before-tax money. Enrolling in these accounts can save you up to 30% in taxes on what you set aside, depending on your tax bracket.  There are different types of flexible spending accounts based on their purpose (Health Care, Limited Dental and Vision, Dependent Care and Transportation) but most have the same rules. Read more details about each here.