Want a less taxing way to pay for health care? The health care flexible spending account (FSA) lets you set aside money—tax-free—to pay for your health care expenses. Contributing is easy, and reimbursements are quick and convenient.
There are two types of health care FSAs—the general purpose health care FSA and the limited purpose health care FSA.
You can participate in the general purpose health care FSA as long as you’re not enrolled in a Health Savings Account (HSA). You can be reimbursed for medical, dental, and vision expenses.
You can participate in the limited purpose health care FSA if you’re enrolled in an HSA but want to use a flexible spending account for your dental and vision expenses. You can’t use it for medical expenses until you meet your medical deductible.
How it works
Make convenient paycheck contributions. Use the money to pay for eligible health care expenses during the calendar year. You have access to the full amount of your annual election on January 1.
Contribute up to $3,050 in 2023. You don’t pay federal or state income taxes on FSA contributions.
Pay for expenses with a simple swipe. Once you enroll, you’ll receive your WageWorks Healthcare FSA Card in the mail. If you pay for an eligible expense other than with your WageWorks Healthcare Card, you can submit your claim on the HealthEquity WageWorks site.
Submit claims by the deadline. The deadline to submit for reimbursement of 2022 expenses is October 8, 2023. The deadline to submit for reimbursement of 2023 expenses is March 30, 2024.
Carry over up to $610. For 2023 to 2024, you can carry over up to $610 of unused funds remaining in your health care FSA once the claims deadline has passed. (For 2022 to 2023, you can carry over up to $570 of unused funds.) Anything above that limit will be forfeited.
Keep in mind
According to IRS rules, once you make your annual election, it can’t be changed until the next open enrollment period, unless you have a qualifying life event before then.
The IRS determines which expenses are eligible for reimbursement under the general purpose health care FSA. Here are just a few expenses you can use your FSA for:
- Doctor and hospital visits (copays and coinsurance)
- Prescription drugs
- Over-the-counter medications, without a prescription
- Hearing aids and batteries
- Fertility treatment
- Lab fees
- Vision exams
- Eyeglasses, contact lenses, and contact lens solution
- Dental treatments
- Feminine care products
View the full list of FSA-eligible expenses.
You can use the limited purpose health care FSA for reimbursement of dental and vision expenses. You may also use the limited purpose FSA for medical and prescription expenses once you’ve satisfied your annual medical deductible.
Save your receipts
When you use your health care FSA to pay for an eligible expense, make sure you keep the receipt. You may need to prove the money was used for an eligible expense.