Flexible Spending Account (FSA)

A flexible spending account (FSA) allows you to deduct a set amount of pre-tax money from each paycheck to pay for certain IRS-qualified out-of-pocket health expenses, such as doctor copays, prescription drugs, and materials such as glasses or artificial limbs.

Simply use your FSA debit card at the point of sale for services or file a reimbursement claim. Since the IRS governs this pre-tax benefit, you can only use your FSA funds for IRS-approved expenses.

Learn More: FSA 101

Eligible Expenses Include

Ambulance
Artificial limbs and teeth
Contact lenses and contact lens solutions
Dental treatment and orthodontia
Fees to doctors
Guide dog
Hospital stays and services

Lactation expenses
Prescribed medical supplies
Lodging & transportation for medical care
Prescription drugs
Smoking cessation
Vaccinations
X-rays

See All Eligible Expenses

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Here's a quick overview:

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Beginners: Start Here!

Are you taking advantage of your pre-tax savings accounts, such as FSA or HSA? Let’s break it down:

What are tax-advantaged benefit accounts
What is an eligible expense
How much to save
How they save you money

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Answers to Your Questions

Determine how much you need to cover the year's out-of-pocket health expenses. We withhold that amount from your paycheck pre-tax in equal installments and deposit it into your FSA.

When you have an eligible expense, simply use your FSA debit card at the point of sale.

Alternately, you can pay with your own funds up front and submit a claim for reimbursement. Save your receipts; you may be required by the IRS to verify expenses.

To participate, you must enroll within 30 days of your date of eligibility, a qualifying event, or during annual open enrollment.

Use your FSA on co-pays, deductibles, co-insurance, materials such as glasses and braces, prescription medications, and certain medical supplies. See IRS Section 502 or visit the FSA Store for full, detailed lists of eligible items.

The IRS's "use it or lose it" rule requires unused funds to be forfeited at the end of the calendar year.

Participants have 90 days from the end of the plan year to file claims for the previous year's expenses.

You may roll over up to a certain amount of unused funds from one year to the next. See IRS Publication 969 for the current rollover amount. All other funds unused at the end of the plan year will be forfeited.

Because of the use it or lose it rule, it's important to carefully plan for your forseeable health expenses for the coming year. This calculator may help you with your FSA election decision:

FSA Calculator

Anyone enrolled in a qualified health plan who does not also participate in an HSA (health savings account). Spouses are each eligible for their own individual FSA, up to the maximum allowable election per calendar year combined.

Watch this video for more info on how much to save in your FSA:

The FSA is a front-loaded account. This means the funds are available to use at the beginning of the year or on your initial eligibility date. You can use the debit card to pay your provider directly or get reimbursement for claims by direct deposit.

Watch this video for more info about the FSA <debit card:

You'll receive a debit card that's automatically loaded with your available funds. Use the debit card to pay your provider directly at the point of sale.

Watch this video for more info about the FSA debit card:

Read more in-depth questions and answers specific to your FSA debit card:

Debit Card Info

Although IRS rules state you cannot have both an HSA and FSA in the same tax year, there are exceptions:

DCA to pay for childcare expenses
LPFSA to pay for dental and vision costs
Parking and transit commuting FSAs

If you have an FSA and plan to enroll in an HSA next year, up to a certain amount of leftover FSA funds will roll over to an LPFSA that can be used for qualified dental & vision costs along with your HSA. See IRS Publication 969 for specific amounts.

You can change your elections only within 30 days of a federally-qualifying event or during annual enrollment. Since this is a pre-tax, front-loaded account, the IRS regulates that the annual election must remain fixed for the entire year. It is important that you calculate your expected health care expenses carefully before election so you do not elect too much or too little. This online calculator can help you determine how much to save:

Claim form

If your employment ends, you may claim FSA expenses incurred only through the date of your termination. You must submit all claims within 30 days of your termination. Any funds not claimed within that time frame may be forfeited.

The maximum adjusts each year for inflation. For the current maximum, see IRS Publication 969. There is no minimum.

You can also see maximums in the annual deferral limits seciton of this page:

Annual Deferral Limits

Yes. To claim mileage, show proof received necessary treatment at a qualifying provider, such as a physician, soecialist, dentist, opthamologist, licensed therapist, licensed clinician, or others. Notate round-trip mileage.

No. Per IRS regulations, you must re-enroll each calendar year. Check out our annual FSA enrollment resources for more info on how that works:

FSA/HSA Annual Enrollment

IRS regulations forbid changing your election unless you experience a federally-qualifying event (birth, death, etc.). Changes must be consistent with your event.

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