Flexible Spending Accounts (FSAs) are tax-advantaged accounts that you can use to pay for eligible medical, prescription drug, dental, vision, hearing and dependent day care expenses. Your contributions to an FSA are deducted from your pay before taxes, which lowers your taxable income. You have two FSA options:
Healthcare FSA
Dependent Care FSA.
If you enroll in an FSA during open enrollment, contributions will be taken from your paychecks starting with the first pay period in January.
If you enroll in an FSA when you first become eligible for coverage, you can start using benefits the first of the month after you enroll. Your contributions will be taken from your paycheck after your benefits start.
You can’t change your contribution amount outside of open enrollment unless you have a qualifying life event.
What are the Differences Between the FSAs?
Healthcare FSA
Dependent Care FSA
Eligibility
All eligible employees (Employees in the Health Savings Plan CANNOT have a Healthcare FSA)
All eligible employees
2025 Contribution Maximum
$3,200
$5,000 (married and filing jointly or single)
$2.500 (married and filing separately)
Plan Year Rollover
2025 Healthcare FSA
Incur expenses by December 31, 2025
Submit expenses for reimbursement by March 31, 2026
After March 31, 2026, up to $640 of unused 2025 funds will roll over to the following year; additional funds are forfeited
2025 Dependent Care FSA
Incur expenses by March 15, 2026
Submit expenses for reimbursement by March 31, 2026
After March 31, 2026, unused funds are forfeited
Eligible Expenses
Medical, prescription drug, dental, vision and hearing expenses, including copays, coinsurance and deductibles
Dependent care expenses for daycare or after-school care expenses for a child under age 13, an elderly person or a person with disabilities, as long as you claim them as a dependent on your tax return. Expenses must be incurred because you and your spouse are working or looking for work
If you elect the Health Savings Plan, you cannot contribute to a Healthcare FSA. Consider which savings account is right for you and your family before making the switch. Review the comparison of the FSA and HSA or the FSA Summary Plan Description for more information.
How FSAs Save You Money
Contributing to an FSA helps you save on your income taxes. Here’s an example of how it works:
