Flexible Spending Account (FSA)
A Flexible Spending Account (FSA) is a voluntary account that allows you to use your before-tax pay for certain healthcare expenses, as determined by IRS regulations. When you establish an FSA, you choose the annual amount you want to contribute, up to certain plan limits. This amount is deducted from your paycheck in equal installments before federal and Social Security taxes are withheld.
You may not change contributions or cancel within the calendar year, unless you have an IRS-qualifying family status change.
You are not eligible to have an HSA and a Healthcare FSA at the same time.
| Question | Healthcare FSA |
|---|---|
| What is the account used for? | Medical, dental, and vision expenses, such as deductibles, coinsurance, copays, glasses and contact lenses, orthodontia and other dental expenses |
| What is the contribution limit? | See the Pre-Tax IRS Maximum Contributions Limits in sidebar at right.1 |
| Does money roll over from year to year? | No, you have 2 ½ months after the plan year in which to spend any money left in your account. Filing deadline: March 31. Any claims incurred after March 15 will not be eligible for reimbursement under the previous year’s FSA and the remaining funds will be forfeited. |
1 NOTE: In 2026 there are 27 pay periods and FSA contributions will cap at the 26th pay. Calculate carefully if you wish to reach the annual maximum.
For a complete list of eligible and ineligible health care expenses visit www.IRS.gov and review Publication 502.
If you choose to participate in the FSA, you must re-elect your FSA goal amount every year. Your previous election will not carry over to the new plan year.
