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Flexible Spending Accounts Definition and Explanation PDF Download

Learn Flexible Spending Accounts definition in hrm with explanation to study “What are Flexible Spending Accounts”. Study flexible spending accounts explanation with HRM terms to review HRM course for online MBA programs.

Flexible Spending Accounts Definition:

  • Benefits plans that allow employees to contribute pre-tax dollars to fund certain additional benefits.

    Human Resource Management by Robert L. Mathis, John H. Jackson



Flexible Spending Accounts Explanation:

A flexible spending account (FSA) is a kind of investment account accessible in the United States that gives the record holder explicit expense focal points. Set up by a business for a worker, the record enables representatives to contribute a bit of their ordinary income to pay for qualified costs, identified with restorative and dental expenses. Another sort of FSA is a needy consideration adaptable spending account, which is utilized to pay for childcare costs, for kids age 12 and under. A reliant consideration FSA has diverse top level input rules than a restorative related adaptable spending account. One of the key advantages of an adaptable spending record is that the assets added to the record are deducted from the worker's profit before they are made subject to finance charges. Accordingly, customary commitments to a FSA can altogether bring down a worker's yearly charge liabilities.

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