Option 1: Health Care Flexible Spending Account (HCFSA) – if not enrolled in High Deductible Health Plan
A health care FSA allows you to set aside pre-tax money through payroll deductions to use for certain expenses not paid by your medical/dental/vision plans. Common eligible medical expenses include: medical expense that go towards your deductible, prescription drugs, vision services –not cosmetic in nature, and dental services –not cosmetic in nature.
The maximum you can contribute to a HCFSA in 2025 is $3,300*.
*These are projected limits subject to change pending IRS official release
Option 2: Limited Health Care Flexible Spending Account (Limited Purpose FSA) – if you are contributing to an HSA Account
A limited-purpose FSA is much like Option 1 in that money is set aside from your paycheck before taxes are deducted. You can then use your pre-tax Limited Purpose FSA dollars to pay for eligible expenses. However, under a limited-purpose FSA, eligible expenses are limited to qualifying dental and vision expenses for you, your spouse, and your eligible dependents.
Note: IRS rules do not allow you to contribute to a health savings account (HSA) if you are covered by any non-qualifying health plan, including a general-purpose health FSA. By limiting FSA reimbursements to dental and vision care expenses, you (or your spouse) remain eligible to participate in both a limited-purpose FSA and an HSA. Participating in both plans allows you to maximize your savings and tax benefits. You can contribute up to $3,300* to a limited-purpose FSA in 2025.
*These are projected limits subject to change pending IRS official release
The use of a Dependent Care Flexible Spending account (DCFSA) can help offset expenses you may incur for the cost of daycare for your dependents, day camp in lieu of day care, before/after school care, or adult day care. The DCFSA limit is $5,000 ($2,500 each for married individuals filing separate tax returns) in 2024. Your daycare provider must provide you with a tax identification number or Social Security number for reimbursements under this account.
If you enroll in a HCFSA and/or DCFSA, Discovery Benefits will mail a debit card to your home address. It may be used to pay for eligible expenses. If you have both HCFSA and DCFSA, the same debit card may be used to access both accounts. Hold on to your receipts as you may need them to substantiate your debit payments.
If you have HCFSA or DCFSA funds left over on December 31, 2025 you may roll over up to $660* into the next plan year. All claims for reimbursement must be received by Discovery Benefits by March 31, 2026.
*These are projected limits subject to change pending IRS official release