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 have elected to have money set aside in this account before taxes are calculated, you may not change your plan elections until the end of the plan year, December 31st, unless there is a significant change in your family status (marriage, divorce, death of spouse, birth of child, termination of spouse’s employment, or a significant change in your spouse’s health coverage). If a change in status occurs, you may make changes consistent with the qualifying event.
• The plan allows a carryover of $660 into the 2026 year. If Medical FSA has a balance over $660 on December 31, expenses incurred in 2025 can be submitted until March 31, 2026, for reimbursement. If Medical FSA still has a balance over $660 after March 31, excess funds will be forfeited.
• You must request reimbursement of expenses incurred during the plan year within 90 days of your termination date. The IRS requires that any unused funds be forfeited.