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Use it — don't lose it!

Find out ways you can use your funds so you don't lose them.

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Eligible expenses

Learn about eligible health care expenses for your Health Care FSA. 

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FSAs FAQs

Get answers to questions about how your FSA works.

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Health care expenses

Use your health care FSA, limited purpose FSA or dependent care FSA to pay for qualified medical expenses.

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Dependent care expenses

If you have children under 13 or adult dependents who are unable to take care of themselves, you can use your dependent care FSA to pay for eligible daycare expenses.

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Tax savings 

Your taxable income is reduced by the amounts you deposit into your FSA accounts, up to IRS limits.

2020 limits:

  • Health care FSA Max IRS Election: $2,750
  • Dependent care FSA Max IRS Election:
    • Individual: $2,500
    • Family: $5,000  

2019 limits: 

  • Health care FSA Max IRS Election: $2,700
  • Dependent care FSA Max IRS Election:
    • Individual: $2,500
    • Family: $5,000 

 

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Haven't used all your FSA funds yet?

It's important to understand that in most cases flexible spending accounts (FSAs) do have a “use it or lose it” rule. That means you would lose any money left in your account at the end of the plan year. See the information below on how to help manage your FSA funds.

FSA spend down tips

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Optum Bank Mastercard®

Your flexible spending account (FSA) with Optum Bank includes an Optum Bank Mastercard® which is a fast and convenient way to pay for eligible medical expenses without submitting paper claim forms.

Use it at the pharmacy, pay at the doctor’s office or write your payment card number on your provider bill. Just remember to keep your receipt, because transactions may have to be validated or substantiated per IRS guidelines.

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Estimating costs

FSAs have a “use it or lose it” rule, meaning you can’t carry money from one year over to the next. Be sure to estimate your contributions carefully. Even if you leave funds behind, however, there’s a good chance you’ll still come out ahead due to the tax savings. 

Here’s an example based on having $100 withdrawn from every paycheck and deposited into an FSA:

  • Federal income tax (25%) –  $25.00
  • State income tax (5%) – $5.00
  • FICA (7.65%) – $7.65
  • Tax savings every paycheck – $37.65
  • Tax savings annually (24 pay periods) – $903.60
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Resource library

What is an FSA?

Watch a short video on health care flexible spending accounts (FSAs) and how they work.

Dependent care FSA

Learn about the purpose of a dependent care FSA by watching a short video.

Limited purpose FSA

See how how a limited purpose FSA works through watching this video.