FSA Guide
Spend Smarter.
Save more on healthcare.
What is a Flexible Spending Account?
A Flexible Spending Account (FSA) is a tax-advantaged financial account that can be set up through an employer's cafeteria plan. An FSA allows you to set aside pre-tax dollars for eligible medical expenses.1
You don't pay taxes on this money, which means an immediate discount on eligible medical expenses that can amount to significant savings—a straight tax break that you can use for everyday healthcare spending.23
Benefits built for mobile.
HealthEquity Mobile app
Manage your FSA on the go — check balances, submit claims, and view transactions.
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EZ Receipts Mobile app
Snap a photo of your receipt and submit it instantly for reimbursement.
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Am I eligible for a Flexible Spending Account?
If your employer offers an FSA as part of your benefits package, you may be eligible to participate. You must enroll during your employer's open enrollment period or within 30 days of a qualifying life event.
How do I sign up?
You can enroll in an FSA during your employer's open enrollment period. Once enrolled, you can set up your account online and start submitting claims right away. Be sure to keep receipts for all your expenses.
Choosing between different FSA options can help you decide which FSA is best for you.
Plan your spending
Think beyond the doctor's office
Your FSA covers more than you think — from prescriptions to vision care, dental work, and much more. Use it for copayments, deductibles, and other qualified medical expenses.
Ready to shop? Visit the FSA Store
The FSA Store makes it easy to shop for FSA-eligible products online. Every product is guaranteed eligible.
Browse the FSA Store nowYour savings can add up fast
Depending on your tax bracket, you could save hundreds of dollars every year. Here's an example of potential savings:
$750
Potential annual tax savings1
FSA Savings Calculator
See how much you could save with an FSA using our calculator.
Calculate my FSA tax savingsMake your elections
During your employer's open enrollment period, decide how much money to contribute to your FSA.
FSA Annual Contribution Limit
The IRS sets annual contribution limits for FSAs. Check with your employer for the current year's maximum.
Get your money right away
Unlike an HSA, your full FSA election amount is available on day one of your plan year. That means you can access your entire annual election immediately, even if you haven't contributed the full amount yet.
Buy FSA eligible products at the FSA store4Know the rules
Timing matters
FSAs operate on a “use it or lose it” basis. Be sure to spend your FSA funds before the plan year ends. However, your employer may offer one of these options:
FSA Carryover5
Your employer may allow you to carry over up to $640 of unused FSA funds into the next plan year.
FSA Grace Period
Your employer may offer a grace period of up to 2.5 months after the plan year ends to use remaining funds.
Limited election period
You can only sign up during open enrollment or a qualifying life event. Once enrolled, you generally cannot change your FSA election until the next enrollment period.6
No double-dipping
You can't use FSA funds for expenses that have been reimbursed or paid for by another plan. Each expense can only be paid for once.
We make it easy to get reimbursed:
Use the HealthEquity mobile app or your online account to submit claims quickly and easily.
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FSA: A flexible way to save
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Return to content 1. Eligible expenses are determined by the IRS. HealthEquity does not provide tax advice.
Return to content 2. Tax savings depend on your individual tax situation.
Return to content 3. Consult a tax professional for personalized advice.
Return to content 4. FSA funds are available at the start of the plan year.
Return to content 5. Carryover amounts are set by IRS regulations and your employer's plan.
Return to content 6. IRS rules govern when changes to FSA elections are permitted.