Flexible Spending Accounts (FSAs) allow you to set aside money from your paycheck before taxes to pay for eligible healthcare or dependent care expenses. Because contributions are deducted from your pay on a pre-tax basis, you’ll lower your taxable income and save money throughout the year.
There are two types of FSAs you can choose from, depending on your needs:
Employees who enroll in the Essential Plan or the Choice Plan, or who are not enrolled in a PTMA medical plan, are eligible to open a Medical FSA. If you enroll in the Smart Saver Plan, you are eligible to open a Health Savings Account (HSA).
All employees—regardless of the medical plan they are enrolled in—are eligible to participate in the Dependent Care FSA. Both employees and spouses (if applicable) must be working, seeking work, or attending school full-time to participate.
The Medical FSA helps you save money on out-of-pocket healthcare costs for you and your eligible dependents. You contribute pre-tax dollars and then use your funds for qualified medical, dental, and vision expenses. You have access to your full annual amount at the start of the plan year.
Eligible expenses include:
The Dependent Care FSA helps you pay for eligible expenses related to the care of your dependents while you (and your spouse, if applicable) work or attend school full-time. Reimbursements are made only after expenses are incurred.
Eligible dependents include:
Eligible expenses include:
More about Dependent Care FSA
What’s Covered – IRS Publication 503
Each year, the IRS sets maximum contribution limits for FSAs. These limits apply to the total amount you may contribute through payroll deductions during the plan year.
Important: FSAs are subject to the “use it or lose it” rule. This means any unused funds at the end of the plan year are forfeited, unless your plan includes a limited rollover or short grace period. Be sure to plan your contributions carefully based on your expected expenses. Your elections are made each year during Open Enrollment and cannot be changed unless you experience a Qualifying Life Event (QLE).
| Account Type | 2026 IRS Limit |
|---|---|
| Medical FSA | $3,400 |
| Dependent Care FSA | $7,500 |
| FSA Carryover Limit for 2026 | $680 |
Your FSA program is administered by WEX, your account and debit card provider. WEX makes it easy to manage your funds, track spending, and access your balance anytime.
With WEX, you can:
After enrolling in either FSA plan, you’ll receive an email from WEX with instructions to set up your online account. You’ll also receive a WEX debit card to pay for eligible expenses directly from your FSA balance.
If you have questions about your Flexible Spending Accounts or need help managing your WEX benefits card, the WEX customer care team can help.