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Flexible Spending Accounts (FSAs)

Flexible Spending Accounts (FSAs)

Flexible Spending Accounts (FSAs) allow you to set aside pre-tax dollars to pay for eligible health and dependent care expenses. Each year, you must elect the annual amount you want to contribute to one or both accounts. Your contributions will be deducted pre-tax from your paycheck which can help reduce your taxable income. Note: there is a $50 contribution minimum to the Healthcare and Limited Purpose FSA plans. 

This plan allows you to place money in a tax-sheltered short-term account for use in paying approved healthcare and/or dependent care expenses.

Healthcare FSA

The Healthcare FSA will reimburse you for eligible health care expenses that you, your spouse, and your children incur during the plan year. When you incur an eligible expense, you can use your Flexi-card and/or submit documentation for reimbursement. Flexi-cards are automatically provided for Healthcare FSA participants.

Note: If you are enrolled in the CDHP with HSA, you are not eligible to participate in the Health Care FSA; however, you may enroll in the Limited Purpose FSA.

The Limited Purpose FSA works in combination with a Health Savings Account (HSA) to help you save money to pay for eligible dental and vision expenses only. You must be enrolled in the CDHP medical plan to be eligible for a Limited Purpose FSA.

The Dependent Care FSA lets you use pre-tax dollars to pay eligible daycare expenses for children aged 12 and under, or elder dependents who are unable to care for themselves. Care can be provided through live-in care, babysitters, or licensed daycare centers.

  Healthcare FSA Limited Purpose FSA Dependent Care FSA
Eligible Medical Plans No medical plan
enrollment needed		 CDHP No medical plan
enrollment needed
Annual Limit $3,400 $3,400 $7,500
Eligible Expenses Health care expenses, such as deductibles, copays, and prescriptions Dental and vision expenses only Dependent care, such as daycare, preschool, and elder care
Funds Available Date Full annual election available upon benefits effective date Full annual election available upon benefits effective date You can be reimbursed up to the amount available in your account
Payment or Reimbursement Options Debit card, direct deposit, or check Debit card, direct deposit, or check Direct deposit or check
Rollover Options Yes, you may rollover up to $680 of unused funds when you re-enroll Yes, you may rollover up to $680 of unused funds when you re-enroll Unused funds do not rollover
Deadline for Services Services must be incurred by 12/31/26 Services must be incurred by 12/31/26 Services must be incurred by 12/31/26
Deadline for Submission for Reimbursement You must submit for reimbursement by 3/31/27 You must submit for reimbursement by 3/31/27 You must submit for reimbursement by 3/31/27

FSAs offer significant tax advantages, but are subject to IRS regulations:

  • All expenses must be incurred during the plan year: January 1 through December 31. Receipts must be submitted by March 31 of the following year for reimbursement.
  • The IRS has a strict “Use-It or Lose-It” rule for FSAs. At the end of the calendar year, you may roll over up to $660 of unused Healthcare FSA funds. Any remaining funds above this amount will be forfeited.
  • Election changes can be made during the new hire enrollment period, open enrollment, or following a qualified life event. 
  • Once you enroll in the FSA, you can only change your contribution amount if you experience a qualified life event.
  • Employees must re-enroll annually; elections do not carry over. 
  • Each account functions separately. You cannot transfer funds from one FSA to another.

See the benefit summaries for detailed information.

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