Are flexible spending accounts right for You?

There’s no one-size-fits-all approach when it comes to flexible spending accounts. To decide if an FSA is right for you, forecast upcoming health and dependent care expenses for the year, plus general drugstore-item spending, and become familiar with the FSA plans being offered.

What is a Flexible Spending Account (FSA)?

A flexible spending account, or FSA, is a tax-advantaged account offered by your employer that allows you to pay for medical expenses or dependent care. Depending on the extent of your health care or dependent care costs, an FSA can help you save a lot of money on taxes, particularly since the list of eligible expenses has expanded in recent years.

How much can you contribute to a health care flexible spending account?

Visit SHRM's resource page on Open Enrollment. Employees in 2023 can contribute up to $3,050 to their health care flexible spending accounts (FSAs), pretax, through payroll deduction—a $200 increase from 2022—the IRS announced. The maximum carryover amount rises to $610, up from $570.