Flexible Spending Account
A Flexible Spending Account (FSA) is a special account you put money into that you use to pay for eligible out-of-pocket care expenses. It allows you to set aside pre-tax dollars for unreimbursed health care and dependent care expenses. Your FSA balance does not roll over from year-to-year. If you do not use your funds, you will lose them. You must re-enroll in the FSA program every year.
When you enroll, your Flexible Spending Account will be set up through HRC Total Solutions.
ACTION REQUIRED: If you wish to enroll in in the Health FSA or Dependent Care FSA, you must complete and submit an enrollment form to Human Resources within 30 days of becoming eligible. If you do not wish to enroll, you must submit a waiver form to Human Resources.
Learn more about
Flexible Spending Account
About Flexible Spending Accounts
Basics
A flexible spending account (FSA) is an account offering tax savings by allowing you to contribute pre-tax dollars for eligible medical and wellness expenses. Funds do not carry over year-over-year and must be used or forfeited.
- Which type is right for you? There are different types of FSA, each serving specific purposes and eligible expenses: Heath Care and Dependent Care.
- Fixed accounts: Once you enroll, you will establish your contribution rate, which remains in place for the entire year. If you happen to leave your employer, your FSA (and any unused dollars) are forfeited.
- Contributions are pre-tax: No tax on contributions or withdrawals and reimbursements.
- Use it or lose it: Money in an FSA does not carry over year-to-year like an HSA. You must spend the balance within the time period, or you will forfeit the money.
Advantages
Security: Your FSA can provide a safe space to save for anticipated medical bills.
Flexibility: Different accounts are designed to meet different needs. For instance, if you're in need of child or adult care services, a Dependent Care FSA can support that need.
Control: In addition to being flexible, an FSA provides you with scheduled control over specific costs. If you know how much you're going to spend in a given year, you can set aside that amount and no more.
Collaboration: Dependent Care FSAs can be paired with an HSA to maximize savings.
Tax Savings: An FSA provides you with tax savings through tax deductions when you contribute and tax-free withdrawals or reimbursement for qualified expenses.
Eligibility
Your health plan election dictates which FSA you qualify for:
- Health Care FSA is used to reimburse out-of-pocket medical, dental, and vision expenses. This account cannot be paired with an HSA.
- Dependent Care FSA can be used to pay for a wide variety of child and adult care services and can be paired with an HSA.
Types of FSA & Contribution Limits
Health Care FSA
2026 IRS Contribution Limit
$3,400
This is the IRS Contribution Limit for the 2026 calendar year. Your total annual contributions should not exceed this amount.
• There will be a $680 rollover into the 2026 plan year. Any dollars over the rollover amount will be forfeited. • Funds can be used for out-of-pocket costs such as copayments, deductibles, dental co-insurance, glasses, contacts, and other healthcare related items
Dependent Care FSA
2026 IRS Contribution Limit
$7,500 / $3,750
Single or Married Filing Joint Return / Married Filing Separate Returns
This is the IRS Contribution Limit for the 2026 calendar year. Your total annual contributions should not exceed this amount.
• Funds can be used for out of pocket costs such as daycare, preschool and elderly care. • To qualify for a DCRA, the IRS requires that the dependent care is necessary for you and your spouse to work, look for work or attend school full-time, along with other requirements.
Important Information!
How do I access my account? : You can access your online account with HRCTS by visiting: www.hrcts.com . Click on the Log In button and select Create username and password to create unique HRCTS credentials.
Will I receive a debit card? If you have enrolled in a healthcare account, you will receive a HRCTS Reimbursement Account Card. The card will be mailed to your home address. If you need additional cards for eligible healthcare dependents, you can order cards through your online account.
Frequently Asked Questions
How does my FSA work?
- Visit Medical/Dental/Vision/Rx Provider:
- Visit your provider and present your insurance ID card.
- Provider Bills for Services
- Your provider will bill you directly. Wait until bill is received to make a payment.
- Pay Your Provider
- Use your HRCTS Reimbursement Account Card or pay online using the HRCTS member portal or mobile app.
- Qualify Your Expense
- In some instances, you may be asked to provide an itemized receipt or explanation of benefits (EOB) to verify that an expense is eligible
What are Dependent Care FSA Qualifying Services?
Qualifying Service means services relating to the care of a Qualifying Individual that enable the participant or their Spouse to remain gainfully employed which are performed:
- In the Participant’s home.
- Outside the participant’s home for (1) the care of a Dependent of the Participant who is under age 13, or (2) the care of any other Qualifying Individual who resides at least eight hours per day in the Participant’s household. If the expenses are incurred for services provided by a dependent care center (i.e., a facility that provides care for more than six individuals not residing at the facility), the center must comply with all applicable state and local laws and regulations.
Who is a Qualifying Individual for Dependent Care FSA funds?
- A Dependent of the Participant who is under the age of thirteen (13).
- A Dependent of a participant who is mentally or physically incapable of caring for himself or herself.
- The Spouse of a Participant who is mentally or physically incapable of caring for himself or herself.
How does my Dependent Care FSA work with reimbursement?
Each Participant’s Dependent Care FSA will be credited for Dependent Care Reimbursement with amounts withheld from the participant's paycheck.
In the event that an approved claim is more than the funds within the Dependent Care Account, the claim will be reimbursement over following months within the same plan year, to be paid out as the Dependent Care Account balance becomes adequate. In no event will the amount of Reimbursements exceed the amount credited to the account. Funds do not carry over from year to year.
Contact the provider of these benefits by calling this phone number or visiting this website: (603) 647-1147, www.hrcts.com