A flexible spending account (FSA) is a personal expense account that works with your health plan. Each year you can set aside a portion of your salary pretax. You can use that money to pay for medical costs not paid for by your health plan. Depending on your tax bracket, an FSA can help you save as much as 10 to 40 percent on most of these costs (See your tax advisor with questions). You cannot contribute to both an HSA and FSA.
HOW THE HEALTHCARE FSA WORKS
1. Decide how much you may pay for medical, dental and vision costs next year. (Plan wisely. Depending on the plan your employer sets up, any unused money may be forfeited at the end of the plan year or grace period.)
2. The amount you select is withheld pretax from your pay in equal portions throughout the year and put into your FSA.
3. Your total FSA contribution is available from day one, even if it has not all been deposited into your account.
4. Pay your out-of-pocket medical bills using a Further Visa® Debit Card or by submitting receipts for reimbursement.
5. Any funds not used at by the end of the plan year will be forfeited (“Use it or Lose it”), with the exception of up to $680 which can be rolled over into the next plan year.
2026 HEALTHCARE FSA LIMITS
Plan Year Minimum: $25
Plan Year Maximum: $3,400
Rollover Contribution if over 55: $1,000