Flexible Spending Account (FSA)
An FSA allows you to set aside pre-tax dollars for eligible healthcare or dependent care expenses. Unlike an HSA, FSAs are 'use it or lose it' - you must spend the funds within the plan year, though some plans offer a grace period or carryover.
2026 IRS Contribution Limits
Key Details
Contributions reduce your taxable income, providing an immediate tax benefit.
Healthcare FSAs cover medical, dental, and vision expenses not covered by insurance.
Dependent Care FSAs cover daycare, preschool, and after-school care for children under 13.
You cannot have a general-purpose Healthcare FSA and an HSA at the same time (Limited Purpose FSA is okay).
Plan your contributions carefully to avoid forfeiting unused funds at year end.
The full annual election amount is available on day one of the plan year for Healthcare FSAs.