What This Rule Means
The FSA Pre-Tax Rule
There are two distinct FSA types with separate limits and rules. A Healthcare FSA covers medical, dental, and vision expenses. A Dependent Care FSA covers care for children under 13 or disabled dependents so you can work. They cannot be combined or cross-used.
How It Works
How FSA Contributions Work
- FSA elections are made during open enrollment and are irrevocable during the plan year except for qualifying life events.
- Healthcare FSA funds are available in full on day one of the plan year — even if you haven't contributed the full amount yet.
- Plans may offer a carryover of up to OR a 2.5-month grace period — not both.
- Dependent Care FSA funds are available only as they are contributed — not front-loaded like healthcare FSAs.
- You cannot have both an HSA and a general healthcare FSA simultaneously. A Limited Purpose FSA (vision/dental only) is permitted alongside an HSA.
2026 FSA Contribution Limits
FSA Contribution Limits
| FSA Type | 2026 Limit | 2025 Limit | Notes |
|---|
Married couples: Each spouse can contribute up to the healthcare FSA limit to their own employer's plan, but the household Dependent Care FSA total is capped at combined.
Example Scenario
Scenario: Using a Healthcare FSA
Scenario — Healthcare FSA with Carryover
Nina contributes the maximum to her Healthcare FSA in 2026 and spends $2,700 on qualified medical expenses by year-end. Her plan offers a carryover.
Nina loses nothing. If her unspent balance had exceeded the carryover limit, she would forfeit only the excess.
Apply These Rules to Your Numbers
See how FSA contributions factor into your full compensation picture.