IRS
What you need to know
Are my FSA-qualified medical expenses tax-free?
The FSA enables employees to pay for qualified medical expenses on a tax-preferred basis (as defined in Section 213d of the IRS code). Essentially, it lowers the cost of those services by the amount of your tax rate.
As long as the money is spent on qualified medical expenses, the money used to pay for those services is not subject to income tax, a benefit that amounts to substantial savings. Employers also benefit from this plan through a reduction of 7.65 percent in their Federal Insurance Contributions Act (FICA) tax expense.
Coaches' Takeaway
As long as the money is spent on qualified medical expenses, the money used to pay for those services is not subject to income tax, a benefit that amounts to substantial savings.
Tools & Resources
CDHPCoach’s Storage Facility, where the Coach has organized and compiled a vast amount of tools and resources for you to access.
Library
Housed here are key components and information within the book, Bend the Healthcare Trend which was the impetus behind the CDHPCoach.
IRS
What you need to know