Flexible Spending Accounts | University of Arkansas System Benefits

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
Paying for Expenses	Pay for expenses directly with a UMR FSA debit card OR receive reimbursement by submitting a Flexible Benefit Plan Reimbursement Form	Receive reimbursement by submitting a Flexible Benefit Plan Reimbursement Form

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:

	With an FSA	Without an FSA
Gross Annual Salary	$50,000	$50,000
Maximum Contribution to a Healthcare FSA	-$3,200	N/A
Adjusted Annual Salary	$46,800	$50,000
Estimated Tax Rate (25%)	-$11,700	-$12,500
Health Care Expenses	Reimbursed through FSA	-$3,200
Final Take-Home Salary	$35,100	$34,300
Savings with a FSA	$800	N/A