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 WEX.

Types of FSAs
Commuter Benefits
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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 three types of FSA, each serving specific purposes and eligible expenses: Heath Care, Limited Purpose, 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: Limited Purpose and 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.
  • Limited Purpose FSA only covers out-of-pocket dental and vision expenses but can be paired with a broader-use 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

Visit the FSA Store

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.

A Health Care FSA (HCFSA) is a pre-tax benefit account that you can use to pay for eligible medical, dental, and vision care expenses that aren't covered by your health insurance plan. This type of account can be set up for you and your eligible dependents whether or not you are enrolled in medical, dental, or vision plan(s).

Eligible Expenses

Limited Purpose 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.

A Limited Purpose FSA1 (LEX HCFSA) allows team members to have money deducted from their pay on a pre-tax basis. Funds then reimbursed for qualified dental/vision expenses only for you, your spouse and your tax-dependent child(ren). This type of account can be set up for you and your eligible dependents whether or not you are enrolled in medical, dental, or vision plan(s).

Eligible Expenses

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.

A Dependent Care FSA1 (DCFSA) is a pre-tax benefit account used to pay for dependent2 care services while you are at work. The money you contribute to a Dependent Care FSA is not subject to payroll taxes, so you end up paying less in taxes and taking home more of your paycheck.

Eligible Expenses

Health Care FSA

2027 IRS Contribution Limit

$3,500

This is the IRS Contribution Limit for the 2027 calendar year. Your total annual contributions should not exceed this amount.

A Health Care FSA (HCFSA) is a pre-tax benefit account that you can use to pay for eligible medical, dental, and vision care expenses that aren't covered by your health insurance plan. This type of account can be set up for you and your eligible dependents whether or not you are enrolled in medical, dental, or vision plan(s).

Eligible Expenses

Limited Purpose FSA

2027 IRS Contribution Limit

$3,500

This is the IRS Contribution Limit for the 2027 calendar year. Your total annual contributions should not exceed this amount.

A Limited Purpose FSA1 (LEX HCFSA) allows team members to have money deducted from their pay on a pre-tax basis. Funds then reimbursed for qualified dental/vision expenses only for you, your spouse and your tax-dependent child(ren). This type of account can be set up for you and your eligible dependents whether or not you are enrolled in medical, dental, or vision plan(s).

Eligible Expenses

Dependent Care FSA

2027 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 2027 calendar year. Your total annual contributions should not exceed this amount.

A Dependent Care FSA1 (DCFSA) is a pre-tax benefit account used to pay for dependent2 care services while you are at work. The money you contribute to a Dependent Care FSA is not subject to payroll taxes, so you end up paying less in taxes and taking home more of your paycheck.

Eligible Expenses
  1. If you elected to participate in an HDHP and have an HSA, you qualify for the Limited Health Care FSA (NOT Health Care FSA) and/or the Dependent Care FSA.
  2. Under a Dependent Care FSA, "dependent" is defined as a child under the age of 13 or an adult dependent or spouse who cannot take care of themselves

What is a Flexible Spending Account (FSA)?

A Flexible Spending Account (FSA) is a tax-advantaged account that allows you to set aside money from your paycheck on a pre-tax basis to pay for eligible health care or dependent care expenses. Because contributions are deducted before taxes, you may reduce your taxable income and increase your take-home pay.

What types of FSAs are available?

Depending on your benefits program, you may have access to:

  • Health Care FSA – For eligible medical, prescription, dental, and vision expenses.
  • Limited Purpose FSA (LPFSA) – For eligible dental and vision expenses only, typically available to employees enrolled in a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA).
  • Dependent Care FSA (DCFSA) – For eligible child care or adult dependent care expenses.

What is the “use-it-or-lose-it” rule?

FSAs are generally subject to IRS rules requiring unused funds to be forfeited at the end of the plan year unless your employer offers a carryover provision or grace period. Review your plan documents for specific deadlines and carryover rules.

Do I need to enroll every year?

Yes. FSA elections generally do not automatically carry over from year to year. If you wish to participate in an FSA for the upcoming plan year, you must enroll during annual enrollment.

How does an FSA save me money?

Your contributions are deducted from your paycheck before federal income taxes and, in most cases, Social Security and Medicare taxes are calculated. This reduces your taxable income and allows you to pay for eligible expenses with tax-free dollars.

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Learn more about Commuter Benefits

Commuter and Transit Benefits

Commuter Benefit

2026 IRS Contribution Limit

$340 / month

The commuter benefit allows employees to make pre-tax payroll contributions to be used for eligible transit and parking expenses. Elections are made monthly by you and may be changed from month to month, which provides flexibility.

You can choose pre-paid transit passes delivered to your home or use the commuter card. Employees utilizing the parking program can opt to have automatic monthly payments made to their parking provider or choose to be reimbursed.

If you leave the company, your commuter benefits do not go with you. You will have a grace period to submit any claims prior to your termination date. Any remaining funds will be forfeited.

Qualified Expenses Include:

  • Transit passes / Tokens / Fare cards / Vouchers
  • Bus / Metro / Subway / Train
  • Mass Transit
  • Parking fees / meters
  • Garages
  • Car / Van Pool
  • Parking at or near work or public transportation to get to work

Non-Qualified Expenses Include:

  • Airline Flights
  • Tolls, Gas expenses or Other personal driving commuting expenses
  • EZ Pass
  • Bicycle Related Expenses
  • Parking for business / client meetings
  • Expenses incurred in traveling from an office to business / client meeting

Commuter Benefit

2027 IRS Contribution Limit

$350 / month

The commuter benefit allows employees to make pre-tax payroll contributions to be used for eligible transit and parking expenses. Elections are made monthly by you and may be changed from month to month, which provides flexibility.

You can choose pre-paid transit passes delivered to your home or use the commuter card. Employees utilizing the parking program can opt to have automatic monthly payments made to their parking provider or choose to be reimbursed.

If you leave the company, your commuter benefits do not go with you. You will have a grace period to submit any claims prior to your termination date. Any remaining funds will be forfeited.

Qualified Expenses Include:

  • Transit passes / Tokens / Fare cards / Vouchers
  • Bus / Metro / Subway / Train
  • Mass Transit
  • Parking fees / meters
  • Garages
  • Car / Van Pool
  • Parking at or near work or public transportation to get to work

Non-Qualified Expenses Include:

  • Airline Flights
  • Tolls, Gas expenses or Other personal driving commuting expenses
  • EZ Pass
  • Bicycle Related Expenses
  • Parking for business / client meetings
  • Expenses incurred in traveling from an office to business / client meeting

Contact the provider of these benefits by calling this phone number or visiting this website: (866) 451-3399, www.wexinc.com

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This Digital Benefits Guide is intended to highlight available benefits and should not be relied upon to fully determine coverage. The benefits plan may not cover all health care expenses. More complete descriptions of benefits and the terms under which they are provided are contained in the Certificate of Coverage that you will receive upon request. If this Digital Benefits Guide conflicts in any way with the policy issued by the employer, the policy shall prevail.