Flexible Spending Accounts

Healthcare Flexible Spending Account

A Healthcare Flexible Spending Account (FSA) allows you to reduce your taxable income while setting aside money for healthcare expenses.

Eligibility
You can enroll within 31 days of becoming benefit-eligible, during Open Enrollment, or within 31 days of a Qualifying Life Event. You can use this account whether or not you are enrolled in a medical plan.

How it Works

• You set aside pre-tax money from your paycheck to help pay for the cost of current and future qualified healthcare expenses for you or your covered dependents.
• Qualified expenses include:
  • Deductibles and coinsurance
  • Prescription medications
  • Dental care, including extractions and braces
  • Doctor’s and urgent care visits
  • Eye exams, glasses, and contacts
  • Some over-the-counter items, including pain relievers, allergy medication, cold/flu remedies, and first-aid supplies
• You must upload your receipts and file reimbursement claims for any qualified expenses incurred in 2026 by March 31, 2027 or the money is forfeited.

What to Know

• 2026 maximum contribution is $3,300.
• You can use this account whether or not you are enrolled in a medical plan.
• An FSA helps lower your taxable income.
• Contributions to these accounts are made with pre-tax dollars, lowering your taxable income and allowing you to keep more of your paycheck.
• You can use this account to pay for healthcare costs, helping make these essential expenses more affordable.
• You pay less in taxes and have greater control over your out-of-pocket costs.
• IRS rules allow you to carry over up to $660 of unused Healthcare FSA funds into the 2026 plan year ($680 from 2026 to 2027).
  • The rollover is automatic if you are a still benefits-eligible employee and not contributing to a Health Savings Account.
  • The carryover amount will be added to your contribution for the current year, and you can still contribute up to the yearly maximum amount, even with a rollover.