I know a number of employers have their employees decide around this time of the year how much money they want to put in their flexible spending account for the coming year.
The downside with an FSA is that it is a use it or lose it account. You have to spend all the money each year or forfeit what is left. Employers can give a grace period after year end for up to two and a half months.
Anyway, to help decide what expenses can be reimbursed from these types of accounts, this is a nice comprehensive list: https://www.fsafeds.com/fsafeds/eligibleexpenses.asp
Also, general information on FSAs can be found in this IRS publication: http://www.irs.gov/publications/p969/ar02.html#d0e1635
The downside with an FSA is that it is a use it or lose it account. You have to spend all the money each year or forfeit what is left. Employers can give a grace period after year end for up to two and a half months.
Anyway, to help decide what expenses can be reimbursed from these types of accounts, this is a nice comprehensive list: https://www.fsafeds.com/fsafeds/eligibleexpenses.asp
Also, general information on FSAs can be found in this IRS publication: http://www.irs.gov/publications/p969/ar02.html#d0e1635
