Flexible Spending Accounts (FSA)

FSA Overview

A Flexible Spending Account (FSA), allows participants to set aside pre-tax dollars to pay for eligible out-of-pocket healthcare and dependent care expenses. FSAs are governed by Internal Revenue Service (IRS) regulations and are subject to annual contribution limits and plan-specific provisions. 

A Health FSA allows employees to use pre-tax funds to cover qualified medical expenses not reimbursed by insurance. Eligible expenses include, but are not limited to, copayments, deductibles, prescription medications, vision care, dental treatments, and certain over-the-counter items as permitted by IRS guidelines.

Employees may contribute up to the annual limit established by the IRS. The full amount elected for the year is available on the first day of the plan year, regardless of the amount contributed to date.

The maximum contribution is $3,300 per year per employer. If you’re married, your spouse can put up to $3,300 in an FSA with their employer as well.

You can use funds in your FSA to pay for certain medical and dental expenses for you, your spouse, and your dependents.

FSA Eligible Expenses

You can spend FSA funds to pay deductibles and copayments, but not for insurance premiums.

You can spend FSA funds on prescription medications, as well as over-the-counter medicines with a doctor's prescription. Reimbursements for insulin are allowed without a prescription.

FSAs may also be used to cover costs of medical equipment like crutches, supplies like bandages, and diagnostic devices like blood sugar test kits.