flexible spending account

noun

1. an account to which an employee contributes a portion of earnings to pay for certain expenses such as medical and dependent care: contributions are exempt from payroll taxes. FSA

Word History and Origins

Origin of flexible spending account¹

First recorded in 1980–85

Example Sentences

Parents can currently set aside pretax dollars in a flexible spending account to spend on child-care costs, for example.

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You can also use a health savings account or a flexible spending account to pay for them.

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But there are ways to keep health care costs lower, including taking advantage of a flexible spending account or health savings account, comparing pharmacy prices on medications and using a care manager through your insurance.

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Pretax deductions: Any money exempt from income taxes, including medical or dental insurance, or money you elected to put into a flexible spending account or workplace retirement plan.

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Broadly, just about anything you’d need to restock a medicine cabinet — a first-aid kit, bandages, allergy medicine, heartburn treatment, antibiotic ointment, pain relievers, contact solution — can be purchased with your flexible spending account.

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