It’s the time of year when we talk about FSAs (Flexible Spending Accounts). These are available to those who are eligible for our active health insurance plan or who waive it.
FSAs allow employees to set aside money tax-free, which can then be used for a variety of health-related or dependent-care expenses. As our plan document says, “The Health Flexible Spending Account enables you to pay for expenses allowed under Sections 105 and 213(d) of the Internal Revenue Code which are not covered by our insured medical plan and save taxes at the same time. The Health Flexible Spending Account allows you to be reimbursed by the employer for expenses incurred by you and your dependents . . . A list of covered expenses is available from the administrator.” Additionally, the IRS keeps this FAQ up to date so you know what may be covered.
The Dependent Care FSA works much the same way but is intended for qualifying childcare or tuition expenses.
While we don’t know what the limits for 2027 Health FSA and Dependent Care FSA accounts will be, we want you to consider now how you might use this important benefit to lessen your tax liability.
Open enrollment will be coming up this fall, and that’s when you can opt in to the FSA or change the amounts you contribute to those accounts.
Getting reimbursed is very easy online or through an app. You simply need to keep your receipt to document the purchase as eligible. Sometimes, when you pay a health care provider through a portal, you don’t even need a receipt!
If you’re not using the FSA and are eligible, you should consider trying it out. You can start by putting in a small amount and see whether you actually use it. We really think this is a great opportunity to shelter more of your income from income tax and use it to your benefit. It’s a win-win.
Last Updated on August 31, 2026