A quick take on Healthcare Flexible Spending Accounts

A Healthcare Flexible Spending Account (FSA) is a health care account that lets you set aside pretax money to help pay for qualified medical, dental and vision expenses that occur during a 12-month period. It’s offered by employers and compatible with all types of health insurance plans.

An advantage of a Healthcare FSA is that you can use pre-tax money to pay for certain health care expenses that are not covered by other plans. Plus, your total contribution amount is available to you on the first day of coverage in the plan, so you can start using your FSA for qualified health care expenses immediately.

How much can I put in?

The contribution limit for a Healthcare FSA varies from employer to employer, but typically you can put in up to $2,700 per year. You will receive a Bank of America Health Account Visa debit card that is credited with your annual contribution amount.

Pay for out-of-pocket expenses

You can use an FSA to reimburse yourself for many common health care expenses, including over the counter items. Check out what expenses are qualified for payment by an FSA here.

What about the Limited Purpose FSA? Is that different?

Yes. An LPFSA is also a flexible spending account but is limited to paying for qualified dental and vision care costs only. An LPFSA may be an option when you also have a Health Savings Account (HSA) available. Learn more about different health account options here.