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What is a Flexible Spending Arrangement (FSA)?

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What is a Flexible Spending Arrangement (FSA)?

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A Flexible Spending Arrangement is a benefit offered to you by your employer under a “Cafeteria Plan” or “Section 125 Plan.” A Cafeteria Plan is regulated by the Internal Revenue Service (IRS) tax code. The location of the regulations within the tax code is Section 125, hence the second name.

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