Flexible Spending Account

A Flexible Spending Account (FSA) is an employer owned account that lets you set aside pre-tax dollars (which lowers your taxable income) to pay for eligible out-of-pocket expenses.

There are three types of FSAs:
1. Healthcare FSA – Can be used to pay eligible medical, dental, orthodontia and vision expenses
2. Limited Purpose FSA – Can be used in tandem with an HSA to pay eligible dental, orthodontia and vision expenses
3. Dependent Care – Can be used to pay eligible expenses for childcare, eldercare or care for a disabled dependent

Important notes regarding Flexible Spending Account Plans:
If you elect to contribute to the Healthcare FSA during the 2025-2026 plan year, you will not be allowed to change your contribution amount unless you experience a change in status (such as marriage, divorce, death of spouse, birth of child, termination of spouse’s employment, or a significant change in your spouse’s health coverage). Any changes you make must be consistent with the change in status.

If you do not spend your full FSA balance before the end of the 2025-2026 plan year (May 31, 2026), you will have two options to avoid losing the remaining balance:
1. For any qualified medical expenses that were incurred during the 2025-2026 plan year, you will have until August 31, 2026 to submit them for reimbursement
2. If you still have funds remaining in your FSA on August 31, 2026, you will have the option to carry over up to $660 for use during the 2026-2027 plan year. If you have more than $660 remaining, the excess balance will be forfeited, as required by IRS regulations.