United States
"Flexible Spending Account (FSA)"

What is Flexible Spending Account ?

A flexible spending account (FSA) is an employer-sponsored savings account that lets employees pay certain out-of-pocket medical or dependent care costs with tax-free dollars.

How Flexible Spending Accounts Works ?

FSA allows to contribute a portion of regular earnings, employers also can contribute. A FSA allows a worker to contribute pretax earnings to pay for qualified medical expenses.

Who is Eligible for Flexible Spending Account ?

FSAs are primarily for salaried employees since only qualified employers can establish and administer FSA plans, self-employed individuals are not eligible to open FSAs.


What is the FSA Contribution Limit ?

The FSA contribution limit is set by the IRS and is annually indexed to inflation. Maximum contribution limit to a flexible spending account is $2,850 in 2022, and $3,050 in 2023.

How Much of FSA Can Roll Over ?

Employers can offer grace period of 2.5 months, through March 15 of following year. For 2023, the carryover option allows to roll over up to $610 of unspent FSA fund at the end of plan year.

Qualified Expenses for FSA

FSA allowed expenses include insurance copayments and deductibles, qualified prescription medications, insulin, chiropractor visits, eyeglasses, LASIK eye surgery and medical devices.

When Can Enroll in FSA ? 

You may enroll in the plan during your employer's open enrollment period prior to the start of the plan year. You may also enroll mid-year if you are a newly hired employee.

How to Enroll in Flexible Spending Account ?


In order to enroll in FSA, the account must be offered through employer. Your employer or benefits administrator will guide you through enrollment.