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 Employee Benefits Corp.
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 two 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.
Flexible Spending Account 125
Please note: The Flexible Spending Account (FSA) is not continuous. This is the only benefit you must update annually if you wish to participate in the upcoming tax (calendar) year. If you are not making changes to Medical, Dental, or Vision please navigate straight to the FSA election screens.
Dependent Care:
- Minimum: $300 | Maximum: $7,500
- If enrolling: Check the box, enter deduction amount, Select Change Reason: Open Enrollment, Click Save
- If NOT enrolling: Click the right arrow to skip
Medical:
- Minimum: $300 | Maximum: $3,400 (maximum amount is subject to change per the IRS)
- If enrolling: Check the box, enter deduction amount, Select Change Reason: Open Enrollment, Click Save
- If NOT enrolling: Click the right arrow to skip
Types of FSA & Contribution Limits
Enrollment Instructions:
To enroll, sign into BusinessPlus with your Employee ID and Password. Under the Employee Online tab, launch the application, navigate to the Menu, select Benefits then select Step 2: Enroll in Benefits. Choose "Choose New Plans" and follow the prompts (blue arrows) through the screens until you get to the Medical FSA 125 or FSA Dependent 125 options. If you wish to elect these, mark the checkbox and specify the Calendar Year 2026 amount, not the per paycheck amount. Select Open Enrollment as your Change Reason and save your choices. After confirming all steps, finish and review your benefits on the Future Enrollment screen; if everything is correct, select "CONFIRM ALL". Your selections will be pending approval and processed accordingly.
Pay Period Details:
Your annual election will be divided over 19 pay periods from January 15, 2027, to December 31, 2027. Please note that deductions will not occur between June 15 and August 15, 2027.
Remember to spend your FSA funds within the calendar year or you will lose the funds since they do not roll over to the following year.
Health Care FSA
Projected 2027 IRS Contribution Limit
$3,500
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.
- If you elected to participate in an HDHP and have an HSA, you qualify for 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
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: (800) 346-2126, www.EBCflex.com
Group #S34034