Financial
Flexible Spending Accounts (FSAs)
Set aside tax-free dollars to pay for eligible health care and dependent care costs.
You’re eligible to enroll in an FSA if you’re a full-time employee, or a part-time employee working at least 30 hours per week.
You’re eligible to enroll in an FSA if you’re a full-time employee, or a part-time employee working at least 30 hours per week.
FSAs, administered through Wex, let you pay for eligible expenses with pre-tax dollars.
There are three types:
- Health Care FSA — medical, dental, and vision expenses
- Limited Purpose FSA — dental and vision expenses only, can be used alongside a Health Savings Account (HSA)
- Dependent Care FSA — day care, summer day camps, nanny services for children under 13, as well as elder care
Contribution limits and deadlines
The 2026 IRS limits are:
- Health Care and Limited Purpose FSA: $3,400.
- Dependent Care FSA: $7,500 for single individuals or married couples filing jointly, or $3,750 for married individuals filing separately.
You have until March 31, 2027, to submit claims incurred January 1 – December 31, 2026.
You can roll over up to $680 of unused Health Care FSA or Limited Purpose FSA funds to 2027. You can’t roll over any unused Dependent Care FSA funds.
All other unused funds will be forfeited after the March 31 deadline.
Contact:
Wex
Flexible spending accounts
866-451-3399
Resources:
Choosing between an FSA and HSA
If you’re not sure which tax-advantaged account is right for you, view the side-by-side comparison to help you choose.
The Limited Purpose FSA can be used alongside an HSA if you’re in an HDHP.
| HSA | Health Care FSA | |
|---|---|---|
| Who owns it? | You | Employer |
| Who funds it? | You | You |
| What plan it pairs with | A qualified HDHP | Any health plan (Limited Purpose FSA pairs with an HSA and HDHP) |
| Do unused funds carry over? | Yes, in full, you own the account | By plan design, only $680 rolls over |
| Portable between employers? | Yes | No |
| Does interest accrue? | Depends on the custodian | No |
| Subject to COBRA? | No | Some accounts are |
| Catch-up for older workers? | Yes, age 55+ if enrolled in an HDHP | No |
| When funds are available | As contributions are made | Full annual amount on the first day of coverage |
| Used for non-medical expenses? | Yes, but taxed; plus a 20% penalty if under 65 | No |
| How you sign up | Any time, if enrolled in a qualified HDHP | Only during a qualified enrollment |
How to use your FSA
If you enroll in a Health Care or Limited Purpose FSA, you receive a debit card to pay eligible expenses.
With the Dependent Care FSA, you submit claims for reimbursement; there is no debit card.
IMPORTANT: The IRS has a “use it or lose it” rule. If you do not spend all of the money in your FSA by the annual deadline, $680 is available for rollover, all other unused dollars in your account(s) will be forfeited.