Short answer: FSA funds can be used for eligible out-of-pocket medical expenses such as copays, prescriptions, dental and vision care, and certain over-the-counter items, subject to IRS rules and the terms of your plan.
FSA funds may be used to pay for a broad range of qualified medical expenses incurred by the employee, spouse, or eligible dependents. Common eligible expenses include copayments, deductibles, prescription medications, medical supplies and equipment, dental care, vision exams, eyeglasses, and contact lenses. Many over-the-counter items, such as bandages and pain relievers, are also eligible.
Eligibility is determined by federal rules issued by the Internal Revenue Service and by the specific design of the employer’s FSA plan. Not every expense that seems medical in nature qualifies, and the list of eligible expenses can change over time.
Some employers also offer a dependent care FSA, which is a separate account used to pay for qualifying child care or elder care expenses. Dependent care FSAs follow different rules and expense eligibility standards than health care FSAs.
Employees should consult their plan materials or FSA administrator for confirmation of eligible expenses before making purchases.
Sources
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Internal Revenue Service, Medical and Dental Expenses (Publication 502): https://www.irs.gov/publications/p502
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Internal Revenue Code, Section 125: https://www.law.cornell.edu/uscode/text/26/125
Content history
Originally published: March 25, 2025
Last reviewed: January 25, 2026