A new
standard benefit at many
US companies. A Flexible Spending Account (
FSA) allows an employee to
predesignate an amount of
money to be
withdrawn from their pay, up to 3000
USD. This money is taken out
pre-tax, and is placed into an account managed by the company.
The employee may submit reimbursement against the account for uncovered medical expenses, and receive payment up to the total expected value of the account. If at the end of the year, the employee has not received reimbursement equal to the value of the account, any extra is returned to the company.