We all have health care expenses. But are you spending money you don’t have to? If you were buying a pair of eyeglasses, and you could pay $70 or $100 for the exact same glasses, what would you choose to pay? $70, right?
That’s how Flexible Spending Accounts work. You put money into an FSA, and then you use that money to buy health-related items the IRS deems “eligible.” You save money by using funds that aren’t taxed. If you aren’t convinced, do the math!
“Enrolled in an HDHP plan and eligible for HSA contributions? You’re not eligible for a health care FSA”
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Contribution limits
A Health Care FSA allows you to save money on a before-tax basis for eligible health care expenses.
2025 limits: $3,300/year maximum
Enrolled in an HDHP plan and eligible for HSA contributions? You’re not eligible for a health care FSA
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Claim deadline
Deadline for claims is 90 days after 8/1 effective date.
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Unused funds carry over?
Some plans allow you to carry over up to $500 to use the following year. (Unused funds in excess of $500 will be forfeited.) If your plan does not allow the $500 carry over, all dollars remaining in your account at the claim deadline will be forfeited.
2025: Up to $660
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What expenses are eligible?
Generally, eligible expenses include medical, prescription drug, dental and vision deductibles, copays and your portion of coinsurance. A complete list can be found at www.irs.gov, Publication 502.
See www.irs.gov, Publication 502.
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