# Flexible Spending Account (FSA)

*Retirement & Benefits — Finicade finance glossary*

An FSA lets you set aside pre-tax salary for medical or dependent care costs, saving your marginal rate plus payroll tax. Its defining constraint is use-it-or-lose-it: unspent money is generally forfeited at year end, with only a small carryover or grace period allowed. The full annual election is available from day one, though — an interest-free advance that survives even if you leave mid-year.

**Also known as:** FSA, flex spending account, dependent care FSA

**Related terms:** [Health Savings Account (HSA)](https://finicade.com/glossary/health-savings-account), [Contribution Limit](https://finicade.com/glossary/contribution-limit), [COBRA](https://finicade.com/glossary/cobra), [Tax-Advantaged Account](https://finicade.com/glossary/tax-advantaged-account), [Marginal Tax Rate](https://finicade.com/glossary/marginal-tax-rate)

Source: https://finicade.com/glossary/flexible-spending-account