Health flexible spending account (FSA)

An employer account that lets you set aside part of your pay before tax for medical, dental and vision costs during a plan year. The full yearly election is available from the first day, but money not spent by the deadline is generally forfeited, unless the plan allows a limited carryover or a short grace period. A general-purpose health FSA makes you ineligible to contribute to an HSA; a limited-purpose FSA for dental and vision does not.