This quick introductory video gives a good overview of this plan.  For your plan-specific rules, contact your HR or benefits department.

What are the benefits of an FSA? What are the disadvantages?

1. It saves you money. An FSA is an employer-sponsored savings account that allows you to put aside money tax-free that can be used to pay for qualified medical expenses.
   
2. It is a tax-saver. Contributions to your FSA are made with pre-tax dollars. Since your taxable income is decreased by your contributions, you pay less in taxes.
   
3. It is flexible. You can withdraw health FSA funds at any time for qualified medical expenses, even if it’s only the beginning of the year and you haven’t contributed the entire yearly amount yet.
   
4. It requires careful planning. FSAs operate under a use-or-lose rule, meaning that if you don’t use the money in your FSA by the end of the plan year, you lose it. Some employers, however, may offer a grace period or allow you to carry over.
   
5. It is not portable. If you change jobs, you typically forfeit the funds left in your FSA.
   
6. It requires proof. You must fill out all the necessary forms and show receipts for FSA-eligible purchases in order to be reimbursed.