Flexible Spending Accounts
Set aside pre-tax dollars to pay for eligible health care and dependent care expenses.
Eligible healthcare or dependent care expenses can be reimbursed from these accounts. FSAs are considered “Use it or Lose it” plans. Please be mindful of your expected eligible expenses when electing FSAs.
There are three types of FSAs
Healthcare Flexible Spending Account
Used for eligible medical, dental, and vision expenses for those not enrolled in an HSA
Limited Purpose Flexible Spending Account
Used for eligible dental and vision expenses with the HDHP to max out tax-savings when paired with an HSA
Dependent Care Flexible Spending Account
Used for eligible child/elder care services
Rollover Maximum
Per IRS regulations, you are only permitted to roll over up to $680 of your healthcare or limited-purpose FSA funds from 2026 into 2027. There is no rollover for Dependent Care FSAs. The rollover happens automatically and no action is required by you.
Run Out Period
For all FSA plans, you will have until March 31st to submit claims for reimbursement for the previous plan year. This means, you have until March 31, 2026 to submit claims incurred Jan 1–Dec 31, 2025.
You are able to change your Dependent Care FSA contribution mid-year if you experience one of the following:
- Dependent is no longer eligible (i.e. child turns 13)
- Child no longer resides with parent after a divorce
- Change of daycare provider
- Cost of care changes (unless care provider is a relative)
- Need for care changes due to a job change or change of work hours
To change your Dependent Care FSA contribution, submit the Life Event: Child Gains Eligibility or the Life Event: Child Loses Eligibility in ADP and solely adjust your contribution to your Dependent Care FSA. More information and instructions on life events can be found here.
Eligible Expenses
The IRS set eligibility for FSAs.
Healthcare FSA funds can be used on eligible Medical, Dental, and Vision expenses, prescription copays, acupuncture and chiropractic care (whether or not covered under the Medical plan), and labs and X-Rays. Limited Purpose FSA funds can be used for eligible Dental and Vision expenses only. View a full list of eligible expenses from the IRS.
Dependent Care FSA funds can be used for childcare and/or elder/adult care such as daycare, before and after school care programs, and adult day care centers. View a full list of eligible expenses from the IRS.
| Healthcare FSA | Limited-Purpose FSA | Dependent Care FSA | |
|---|---|---|---|
| 2026 Maximum Contribution | $3,400 | $5,000 per household ($2,500 for single filers and for married filing separate) |
|
| Who Can Enroll? | Benefits eligible employees not enrolled in an HSA | Benefits eligible employees enrolled in the Cigna HDHP medical plan | Benefits eligible employees |
| Example of Eligible Expenses | Health related costs (medical, dental, and vision copays) | Dental & Vision services | Workday dependent care services |
| Example of Ineligible Expenses | Cosmetic surgery, Nonprescription medication | Cosmetic surgery, Nonprescription medication | Education expenses, Transportation |
| 2025 Max Rollover Amount | $660 will rollover into 2026 | No Rollover | |
| 2026 Max Rollover Amount | $680 will rollover into 2027 | ||
| Runout Period | March 31st | ||
What’s the difference between Healthcare and Limited-Purpose Flexible Spending Accounts (FSAs) and a Health Savings Account (HSA)?
While these plans can all be used for eligible healthcare expenses, it’s important to note the differences illustrated in the chart below.
| Healthcare FSA | Limited-Purpose FSA | HSA |
|---|---|---|
| Can contribute if not enrolled in the HDHP Medical Plan | Can contribute if enrolled in the HDHP Medical Plan | |
| Contributions are pre-tax | ||
| Contributions can be used for eligible Medical, Dental, & Vision expenses | Contributions can be used for eligible Dental & Vision expenses | Contributions can be used for eligible Medical, Dental, & Vision expenses |
| "Use it or Lose it" only $680 of unused funds can be rolled over into the following plan year | No "Use it or Lose it". Funds rollover year-to-year and are yours to take with you should you leave Attentive | |
| Cannot invest funds | Funds can be invested as part of a retirement strategy | |
You must re-elect FSA each year during Open Enrollment. If you elect a medical plan with an HSA, your remaining unused FSA funds, up to the rollover maximum, will be rolled into a Limited-Purpose FSA to be used for vision and dental expenses.
NOTE: The Internal Revenue Code (IRC) allows pretax contributions to Flexible Spending Accounts (FSAs) as long as the benefit does not favor highly compensated employees (HCEs). You are considered “highly compensated” if your gross earnings are above the annual amount set by the Internal Revenue Service (see the IRS website for details).
In accordance with IRC regulations, attentive examines FSA elections each year to ensure that the benefit does not disproportionately benefit HCEs and that the Plan remains compliant. If the benefit is found to “discriminate” against non-highly compensated employees, Attentive will reduce contributions made by HCEs to a level that enables compliance with the IRC.
Contact
Resources
- You can find additional information, resources, and claims submission forms on our internal US Benefits Hub.