Advantages of a Flexible Spending Account

What are the advantages of a Flexible Spending Account?

1. Pre-Funding – Medical FSAs are pre-funded by the employer, which means that regardless of the amount you set aside each pay period, the entire total of your annual contributions is available for use immediately.
2. Tax Savings – As an example, with flexible spending, deducting $2,000 per year from taxable income and depositing it into a medical FSA can result in annual tax savings of nearly $750.