A Flexible Spending Account (FSA) is a special account that allows employees to set aside pre-tax money for eligible medical expenses. This means that the money you contribute is deducted from your paycheck before taxes, which can help lower your overall taxable income. FSAs can be used for various expenses, such as copayments, prescription medications, and certain medical supplies. Employees typically decide how much to contribute to their FSA at the beginning of the year, and the funds are available for use throughout the year. However, it's important to note that any unused money may be forfeited at the end of the plan year, so careful planning is essential.