Flexible Spending Accounts

Take control of your spending! A Flexible Spending Account (FSA) is a special tax-free account you put money into to pay for certain out-of-pocket expenses.

Your FSA Options

Healthcare Flexible Spending Account

WEX

Annual Limit: $3,400

Up to $680 may be rolled over to the next year at the end of 2027 for Healthcare FSAs.

With a WEX Healthcare FSA, you can contribute up to $3,400 annually for qualified medical expenses (deductibles, copays, coinsurance, menstrual products, PPE, over-the-counter medications, etc.) with pre-tax dollars, which reduces your taxable income and increases your take-home pay. You can even pay for eligible expenses with an FSA debit card at the same time you receive them — no waiting for reimbursement.

qualified medical expenses (deductibles, copays, coinsurance, menstrual products, PPE, over-the-counter medications, etc.)
Expenses must occur during the 2027 year.
Funds cannot be transferred between FSAs.
You are not permitted to claim the same expenses on both your federal income taxes and Dependent Care FSA.
You must “use it or lose it” — any unused funds will be forfeited.
You cannot change your FSA election in the middle of the year without a Qualifying Life Event.
Terminated employees have sixty (60) days following termination to submit FSA claims for reimbursement.

Dependent Care Flexible Spending Account

WEX

Annual Limit: $5,000

No IRS rollovers are allowed.

In addition to the Healthcare FSA, you may opt to participate in the Dependent Care FSA — even if you don’t elect any other benefits. Set aside pre-tax funds into a Dependent Care FSA for expenses associated with caring for elderly or child dependents. Unlike the Healthcare FSA, reimbursement from your Dependent Care FSA is limited to the total amount that is currently deposited in your account.

Eligible dependents include children under 13 and a spouse or other individual who is physically or mentally incapable of self-care and has the same principal place of residence as the employee for more than half the year. This account covers dependent daycare expenses that are necessary for you and your spouse to work or attend school full time. Eligible expenses include:
In-home babysitting services (not provided by a dependent)
Care of a preschool child by a licensed nursery or daycare provider
Before- and after-school care
Day camp
In-house dependent daycare
Expenses must occur during the 2027 year.
Funds cannot be transferred between FSAs.
You are not permitted to claim the same expenses on both your federal income taxes and Dependent Care FSA.
You must “use it or lose it” — any unused funds will be forfeited.
You cannot change your FSA election in the middle of the year without a Qualifying Life Event.
Terminated employees have sixty (60) days following termination to submit FSA claims for reimbursement.

Using the Account

Use your FSA debit card at doctor and dentist offices, pharmacies, and vision service providers. It cannot be used at locations that do not offer services under the plan, unless the provider has also complied with IRS regulations. The transaction will be denied if you use the card at an ineligible location.
Submit a claim form along with the required documentation. Contact WEX with reimbursement questions. If you need to submit a receipt, WEX will notify you. Always save receipts for your records.
While FSA debit cards allow you to pay for services at point of sale, they do not remove the IRS regulations for substantiation. Always keep receipts and Explanation of Benefits (EOBs) for any debit card charges in case you need to prove an expense was eligible. Without proof an expense was valid, your card could be turned off and the expense deemed taxable.

General Rules

The IRS has the following rules for Healthcare and Dependent Care FSAs:

Expenses must occur during the 2027 year.
Funds cannot be transferred between FSAs.
You are not permitted to claim the same expenses on both your federal income taxes and Dependent Care FSA.
You must “use it or lose it” — any unused funds will be forfeited.
Up to $680 may be rolled over to the next year at the end of 2027 for Healthcare FSAs.
You cannot change your FSA election in the middle of the year without a Qualifying Life Event.
Terminated employees have sixty (60) days following termination to submit FSA claims for reimbursement.