Flexible Spending Accounts (FSAs) allow you to set aside pre-tax dollars to pay for eligible health and dependent care expenses. Each year, you must elect the annual amount you want to contribute to one or both accounts. Your contributions will be deducted pre-tax from your paycheck which can help reduce your taxable income.
The Health Care FSA will reimburse you for eligible health care expenses that you, your spouse, and your children incur during the plan year. When you pay for eligible out-of-pocket expenses, you can use your WEX debit card or submit documentation for reimbursement.
Note: If you are enrolled in an HSA, you are not eligible to participate in the Health Care FSA.
The Limited Purpose FSA works in combination with an HSA to help you save money to pay for eligible dental and vision expenses only. You must be enrolled in the HSA PPO medical plan to be eligible for a Limited Purpose FSA.
The Dependent Care FSA lets you use pre-tax dollars to pay eligible daycare expenses for children age 12 and under, or elder dependents, who are unable to care for themselves. Care can be provided through live-in care, babysitters, or licensed daycare centers.
| Health Care FSA | Limited Purpose FSA | Dependent Care FSA | |
|---|---|---|---|
| Annual Limit | $3,400 | $3,400 | $7,500 |
| Eligible Expenses | Health care expenses, such as deductibles, copays, and prescriptions | Dental and vision expenses only | Dependent care, such as daycare, preschool, and elder care |
| Funds Available Date | Full annual election available upon benefits effective date | Full annual election available upon benefits effective date | You can be reimbursed up to the amount available in your account |
| Payment or Reimbursement Options | Debit card or reimbursement | Debit card or reimbursement | Reimbursement |
| Deadline to Receive Services | Services must be incurred by 12/31/26 | Services must be incurred by 12/31/26 | Services must be incurred by 12/31/26 |
| Deadline to Submit for Reimbursement | You must submit for reimbursement by 3/31/27 | You must submit for reimbursement by 3/31/27 | You must submit for reimbursement by 3/31/27 |
FSAs offer significant tax advantages, but are subject to IRS regulations:
