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All You Need to Know About Flexible Spending Savings Account

If you have ever searched for a new savings account, you probably discovered there are numerous types to choose from. This is great for consumers with unique financial circumstances who could benefit from specialized banking resources.

One bank account that serves as a fantastic specialized resource is the flexible spending savings account. It provides great tax benefits to customers, helping them save exponentially as they set money aside for future expenses.

Basics of the Flexible Spending Savings Account

A flexible spending savings account is unique in the world of savings. These accounts are categorized as employee benefit programs designed to help you store money on a pre-taxed basis.

The types of flexible spending accounts you could run into include health care spending accounts (HCFSA), dependent care spending accounts (DCFSA) and limited expense HCFSAs. All allow you to set pre-tax dollars aside from your paycheck to pay for special expenses while reducing your adjusted gross income and taxable income.

It’s important to keep in mind that flexible spending accounts typically have limitations. For instance, you might have a maximum dollar amount you can save each year. Or you might be required to spend the money in your account before the end of the year. Also, you could be required to spend savings on preapproved items.

To learn more about the flexible spending savings account, browse the articles below. Also, you can explore savings account rate tables at GOBankingRates to find the right account for you.

Most Read Flexible Spending Savings Account Articles

Guide to Health Savings Accounts

Now that you have to have health insurance, here's how to save for it.

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Pros and Cons of Flexible Savings Accounts

Make your money flex.

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In Light of Skyrocketing Health Care Costs, Does Every American Need a Health Savings Account?

Time to give yourself a personal finance checkup.

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Types of Flexible Spending Accounts

A flexible spending account (FSA) is an employee benefit program that allows the beneficiary to set aside part of their earnings, tax-free, ...

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Flexible Spending Account: Use It or Lose It

Flexible Spending Accounts can save you a large amount of money. If you pay a lot in medical expenses every year that aren’t covered b...

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Flex Your Financial Muscle With a Dependent Care Flexible Spending Account

With your new child, you’ll be taking on new responsibilities – and new expenses. One way Uncle Sam can help you meet those new expe...

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Flexible Health Spending Account-Tax Breaks

Healthcare flex accounts will allow you to take advantage of tax breaks because the money put into healthcare flex accounts are pretaxed.

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