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Flexible Spending Accounts (FSAs) allow you to pay for eligible expenses using tax-free dollars. There is a “use it or lose it” rule imposed by the IRS. If you do not spend all the money in your Health Care or Dependent Care FSA by March 31 of the following year for expenses incurred from January 1-December 31, unused dollars will be forfeited per IRS regulations for pretax contributions. The FSA program is administered by WEX.

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The Health Care FSA contribution maximum for 2026 is $3,400.  This account is available to all eligible employees who are not enrolled in the Simple Navigate ACA HSA Plan (EACF) with UHC or Simple ACA HSA Plan (EABE). If you and your spouse are both offered FSA plans, you can each elect the maximum for a combined household set aside of $6,800.

 

Health Care Reimbursement FSA

This program lets employees pay for certain IRS-approved medical care expenses not covered by their insurance plan with pre-tax dollars.

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Some examples include:

• Deductibles

• Copays

• Coinsurance

• Vision services, including contact lenses, contact lens solution, eye examinations, and eyeglasses

• Dental services and orthodontia

• Hearing services, including hearing aids and batteries

• Chiropractic services

• As of January 1, 2020, over the counter drugs/medications are covered under the FSA without a prescription.  Menstrual products are also included as a qualifying expense.

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 Understanding Medical FSA English

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Understanding Medical FSA Spanish version

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FSA Real Life Examples (Grace Periods)

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FSA Rules - Paying for Braces

 

Dependent Care FSA

The Dependent Care FSA allows employees to use pre-tax dollars towards qualified dependent care expenses such as caring for children under the age of 13 or caring for disabled dependents over the age of 13 (as long as you and your spouse (if married) are working full-time). This includes the taxpayer’s dependent or spouse who is physically or mentally incapable of self-care and who has the same principal place of residence as the taxpayer for more than half of the taxable year.

 

The annual maximum amount you may contribute to the Dependent Care FSA is $5,000 per household (or $2,500 each if married and filing separately) per calendar year.

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Understanding the Dependent Care FSA

 

Eligible Expenses

• Expenses for a nursery school, preschool or similar program below the level of kindergarten are eligible.

• Expenses for before- or after-school care of a child in kindergarten or a higher grade are eligible.

• Day camp expenses, including specialty camps such as sports or computer, are eligible.

• Expenses for transportation provided by the dependent care provider to or from the place of care are eligible. The cost of transportation provided by anyone else is not eligible.  

• Employment taxes paid to a caregiver are eligible.

• Expenses related to providing room and board to a caregiver may be eligible.

• Indirect expenses such as application fees, agency fees or deposits paid to obtain dependent care services are eligible. 

Ineligible Expenses

• Expenses for kindergarten or higher grade levels are not eligible

• Expenses for overnight camps are not eligible.

• Payments to either the taxpayer’s spouse or to a parent of the taxpayer’s child who is not the taxpayer’s spouse are not eligible.

 

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