Flexible Saving Account Coverage Details

Utilizing a flexible saving account, or FSA, can provide you with a great way to help pay for various medical expenses. Usually FSAs are less expensive than other types of accounts, like HMOs. If you get this type of account, it is important that you understand how it works and what the coverage details are. Here are a few things to consider about the coverage details of a flexible saving account.

Contributions

With this type of account, you can contribute pretax dollars from your paycheck. The money is allowed to stay in your account until you use it, or until the end of the calendar year. If you do not use the money within the time period, you will lose the money.

Coverage Period

With this type of account you have a coverage period. The coverage period will end when the plan is finished. Usually, that is at the end of the year, or when you stop working at an employer. If you choose not to continue your insurance coverage with your employer through COBRA, you will also give up the money in your flexible saving account as well. These are important rules to consider before you give up your rights to the money.

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