Flexible Spending Account
E.L. Haynes lets you redirect a portion of your pay, through payroll deductions, into Flexible Spending Accounts (FSAs) through American Benefits Group. The money that goes into an FSA is deducted from your pay on a pre-tax basis (before Federal and Social Security taxes are calculated). Because you do not pay these taxes on money that goes into an FSA, you decrease your taxable income and potentially increase your spendable income. FSA renews on your Plan Year (July 1st).
FSA Active Open Enrollment
FSA benefits are ACTIVE, you must actively elect these benefits during the open enrollment period (May 18 - May 29). If you do not elect these benefits before the end of open enrollment, you will not have coverage for the new plan year.
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.
- 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
For a complete list of eligible medical expenses, please click here to view IRS Publication 502.
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).
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.
Use It or Lose It
Any unused funds at the end of the plan year for both FSA and DCFSA are available to be used in the new plan year for 1.5 months (grace period) after that time they are forfeited, also called the use-or-lose rule.
- 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.
- 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
Frequently Asked Questions
When can I access my funds?
- HCFSA: The full elected amount is available on the first day of the plan year.
- DCFSA: Funds are only available as they are contributed from your paycheck.
How do I get reimbursed?
You can submit a claim with an itemized receipt or explanation of benefits (EOB), or use the FSA debit card provided by the administrator
Can I change my contribution amount?
Changes are only allowed during the annual open enrollment period or if you experience a Qualifying Life Event (QLE), such as marriage, divorce, or birth of a child.
Are DCFSA expenses tax-deductible?
You cannot claim the same expenses on both your tax return (Child and Dependent Care Tax Credit) and your DCFSA.
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.
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.
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: Customer Service: 800-499-3539| www.amben.com