Flexible Spending Accounts (FSAs) save tax. The IRS reminds eligible employees to take advantage of employer health care FSAs in 2017 to pay uncovered medical expenses with pretax dollars. Participants for 2017 must decide by year end how much to contribute through payroll deductions (up to $2,600). Contributed amounts aren’t subject to federal income tax, Social Security tax or Medicare tax. Expenses must be incurred in the plan year, unless the employer has adopted a grace period or carryover option. Self-employed persons are ineligible. IR 2016-168
