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Flexible Spending Account Guide

Learn how an FSA can help you save on healthcare and dependent care expenses.

What is an FSA?

A Flexible Spending Account (FSA) allows employees to contribute pre-tax dollars toward eligible healthcare expenses. FSAs are employer-sponsored and reduce your taxable income, helping you save on medical, dental, and vision costs. There are several types of FSAs: • Healthcare FSA — covers eligible medical, dental, and vision expenses • Limited Purpose FSA — for dental and vision only, compatible with an HSA • Dependent Care FSA — for qualifying dependent care expenses like daycare and elder care

FSA Questions

For 2025, the Healthcare FSA contribution limit is $3,300. The Dependent Care FSA limit is $5,000 per household.

Employers may offer a grace period of up to 2.5 months or a carryover of up to $640. Check with your employer for your plan's specific rules.

You can have a Limited Purpose FSA (dental and vision only) alongside an HSA. A standard Healthcare FSA and HSA cannot be held simultaneously.

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