Understanding Flexible-Spending Savings Accounts
One bank account that serves as a fantastic, specialized resource is the flexible-spending savings account. It provides great tax benefits and can help you save exponentially as you set money aside for future expenses. These accounts are categorized as part of employee-benefit programs, and they’re designed to help you store money on a pretax basis.
The types of flexible-spending accounts you might see include healthcare flexible spending accounts (HCFSA), dependent-care flexible spending accounts (DCFSA) and limited-expense HCFSAs. All allow you to set pretax dollars aside from your paycheck to pay for special expenses.
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 be required to spend your account balance before the end of the year. To learn more, browse GOBankingRates.