Accounts

Short answer: Yes. Most FSA expenses require documentation, although some purchases are automatically substantiated at the point of sale. If documentation is requested and not provided, your FSA card may be suspended.

Short answer: Yes. Many over-the-counter items—such as pain relievers, allergy medications, and first aid supplies—are FSA-eligible without a prescription under current federal law.

Short answer: No. A change in expenses alone does not allow a mid-year FSA change; you must experience a qualifying life event and your employer’s plan must permit the change.

Short answer: You usually lose access to unused FSA funds when you leave your job, unless you elect COBRA for a healthcare FSA. Dependent care FSAs cannot be continued through COBRA.

Short answer: Yes. Healthcare FSA funds may be used for eligible expenses for your spouse or dependents even if they are not enrolled in your health plan, as long as they meet IRS eligibility rules.

Short answer: A healthcare FSA pays for medical expenses and makes the full annual election available at the start of the year, while a dependent care FSA pays for work-related child or elder care and is only available as funds are contributed.

Short answer: Under the Uniform Coverage Rule, the full annual election for a healthcare FSA must be available at the start of the plan year, even though contributions are made through payroll deductions over time.

Short answer: Under IRS rules, FSA elections generally cannot be changed during the plan year unless a permitted qualifying event occurs and the employer’s plan allows a mid-year change.

Short answer: An employer may contribute to an employee’s healthcare FSA, but the total benefit is generally limited to the greater of $500 or a dollar-for-dollar match of the employee’s contribution, subject to IRS Section 125 rules and plan design.

Short answer: For 2026, employees may contribute up to $3,400 to a healthcare Flexible Spending Account (FSA), regardless of coverage level.

Short answer: No. An employee does not have to enroll in the employer’s group health plan to participate in a health care FSA, but the employer must offer a group health plan in order to offer an FSA.

Short answer: Usually no. A general-purpose FSA makes you ineligible to contribute to an HSA, but a limited-purpose FSA that covers only dental and vision expenses is allowed.

Short answer: FSA funds are generally “use it or lose it,” but employers may offer either a grace period or allow up to 20% of the annual contribution limit (up to $660 for 2026) to carry over into the next plan year.

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.

Short answer: A Flexible Spending Account (FSA) allows employees to set aside pre-tax dollars to pay for eligible medical or dependent care expenses, reducing taxable income, but unused funds are generally forfeited.