by admin | Jan 12, 2026 | Blog
Flu season is in full swing, and being prepared can make all the difference. The best part? You can use your FSA or HSA funds to stock up on these health essentials without spending extra out-of-pocket.
Here are the top 5 FSA/HSA-approved products to keep you healthy this season:
1. Thermometers
A reliable thermometer is a must for tracking fevers. Digital and smart thermometers are FSA/HSA eligible and help you monitor symptoms accurately.
🔗 Buy a FSA‑eligible thermometer
2. Over-the-Counter Medications
Pain relievers, fever reducers, and cough/cold medicines are often eligible with a prescription. Check your FSA/HSA store for flu symptom relief bundles.
🔗 Shop FSA‑eligible cold & flu meds
3. Humidifiers
Combat dry air and soothe congestion with a humidifier. Many models qualify for FSA/HSA coverage.
🔗 See eligible humidifiers
4. Saline Nasal Sprays
Affordable and effective, saline sprays help relieve nasal congestion and keep your sinuses clear.
🔗 Buy FSA/HSA‑eligible saline spray
5. Face Masks & Hand Sanitizers
Preventing the spread of germs is just as important as treating symptoms. Stock up on masks and sanitizers—both are typically covered.
🔗 Learn about mask & sanitizer eligibility
Why Use FSA/HSA Funds?
Using your tax-free dollars for flu season essentials is a smart way to save money while staying healthy. Don’t forget to check your FSA/HSA store for seasonal deals before your plan year ends!
For a full list of all eligible FSA items click here.
by admin | Dec 5, 2025 | Blog
The end of the year is almost here—can you believe it? Before you dive into holiday plans, take a quick peek at your Flexible Spending Account (FSA) or Health Savings Account (HSA). You might have money sitting there that could vanish if you don’t use it soon!
Why You Should Check
- FSA funds usually expire: Most FSAs follow the “use it or lose it” rule. If you don’t spend the money by December 31, it could go away. Some plans offer a grace period or a small rollover, but not all do.
- HSA funds roll over: HSAs are more forgiving, but it’s still smart to use what you can now—especially for tax savings and health needs.
What Can You Buy?
You’d be surprised at what counts! Eligible items include:
- Prescription meds and over-the-counter medicine
- Glasses, contacts, and eye exams
- Dental visits and orthodontics
- First-aid kits, sunscreen, and even period products
Top 5 FSA/HSA Buys
Here are some popular, eligible items to spend your funds on before the year ends:
- Sunscreen – Protect your skin year-round.
Shop Sunscreen at FSA Store
- Blood Pressure Monitor – Keep tabs on your health at home.
Shop BP Monitors at FSA Store
- First-Aid Kit – Be prepared for life’s little surprises.
Shop First Aid Kits at FSA Store
- Menstrual Care Products – Pads, tampons, and more are eligible.
Shop Menstrual Care at FSA Store
- Thermometers & Wellness Devices – Great for family health tracking.
Shop Thermometers at FSA Store
Quick Tip
Every plan is different, so log in to your account or call your benefits provider to confirm your deadline and what’s covered.
Don’t let your hard-earned dollars go to waste. Take five minutes today to check your balance and make the most of your benefits before the year ends!
Explore More Eligible Items at FSA Store by clicking here.
by admin | Oct 20, 2025 | Blog
New 2026 limit provides greater savings flexibility for working families
Effective January 2026, the annual contribution limit for Dependent Care FSAs will increase from $5,000 to $7,500 per household. For those married filing separately, the limit rises from $2,500 to $3,750. This is the first permanent increase since the benefit was established in 1986, intended to help working families manage rising childcare costs.
This change was introduced as part of the One Big Beautiful Bill Act, signed into law on July 4, 2025. The bill includes sweeping updates to employee benefits, aiming to provide greater financial flexibility for working families
A Dependent Care Flexible Spending Account (DCA or Dependent Care FSA) is a pre-tax benefit account that allows employees to set aside money to pay for eligible child or adult dependent care expenses. These can include daycare, preschool, before- and after-school programs, and elder care services—provided the care enables the employee (and spouse, if applicable) to work or look for work.
Key Considerations for Employers
- Plan updates required: Employers must revise Section 125 cafeteria plan documents to reflect the new limits.
- Nondiscrimination Testing still applies: Plans must pass IRS rules to ensure fairness across income levels.
- Clear communication is essential: Employees need to understand the new limits, deadlines, and use-it-or-lose-it rules.
- Employers should connect with their HRIS partners/vendors to update system configurations accordingly.
- Employers with non–calendar-year plans may adopt the higher limit effective January 1, 2026, provided their plan documents are amended accordingly. Employers must also ensure no employee exceeds the annual $7,500 contribution limit for the 2026 tax year.
Employers may adopt the increased limit with their next plan renewal. If adopted, be sure to update payroll systems, plan documents, and employee communications before the start of the plan year.
by admin | Oct 14, 2025 | Blog
The IRS announced the 2026 contribution limits for all Flexible Spending Account (FSA) plans. Below is an overview of the limit increases across all the types of FSAs.
Health Flexible Spending Account
The Health FSA, which provides employees the ability to set aside money on a pre-tax basis to pay for eligible medical, dental, and vision expenses will have an increase to its contribution maximum from $3,300 to $3,400 for 2026. The new contribution limit will also apply to the Limited Purpose FSA which reimburses eligible dental and vision expenses. Limited Purpose FSA limits will also increase from $3,300 to $3,400 for 2026.
Carryover Limit
The FSA Carryover limit provides employers the option to transfer a maximum amount of remaining FSA balances at a plan year’s end to carryover for use during the next plan year. This is available with Healthcare and Limited Purpose FSAs only. The carryover limits for this account will increase from $660 to $680 for 2026.
Dependent Care Flexible Spending Account
The Dependent Care FSA allows employees to set aside pre-tax dollars to pay for eligible dependent care expenses,
such as daycare, preschool, and before- or after-school programs. For 2026, the contribution limit will increase from
$5,000 to $7,500 for single taxpayers or married couples filing jointly. For married individuals filing separately, the limit
will increase from $2,500 to $3,750. This change was enacted through legislation passed in July 2025 and is not subject
to annual inflation adjustments.
Commuter Benefits
Commuter Benefits help employees pay for certain parking, mass transit, and/or vanpooling expenses with pre-tax dollars. The contribution limits for this account will increase from $325 to $340 for 2026.
Adoption Assistance
The Adoption Assistance FSA helps employees pay eligible adoption expenses such as agency fees and court costs by contributing to the account with pre-tax money from their paycheck. The contribution limits for this account will increase from $17,280 to $17,670 for 2026.
For more information about this major change, read our latest handout.
by admin | Oct 9, 2025 | Blog
When managing a health Flexible Spending Account (FSA) under a cafeteria plan, employers often face questions about reimbursement eligibility—especially when employees incur medical expenses before officially enrolling. A common scenario involves new hires who want to submit claims for services received prior to their start date. So, can a health FSA reimburse expenses incurred before a participant’s enrollment?
Short Answer: No.
According to IRS regulations, a participant must be actively enrolled in the health FSA at the time the medical service is provided for the expense to qualify for reimbursement. This rule applies regardless of when the participant is billed or pays for the service.
Key IRS Guidelines on Health FSA Reimbursements
- Coverage Timing Matters:
Expenses must be incurred while the employee is covered under the health FSA. Coverage begins on the enrollment date—not retroactively.
- Date of Service Is Key:
The IRS defines the “incurred date” as the date the medical care is provided, not when payment is made or billed.
- No Retroactive Claims:
Services received before enrollment (even within the same plan year) are not eligible for reimbursement.
Example Scenario
Let’s say your company has a calendar-year cafeteria plan. An employee is hired in June and enrolls in the health FSA at that time. They later request reimbursement for dental services received in March. Since the services occurred before their enrollment, those expenses cannot be reimbursed under IRS rules.
What About DCAPs (Dependent Care Assistance Programs)?
The same rules apply. DCAPs also require that dependent care services be provided while the participant is enrolled in the plan. Claims for services before enrollment are not eligible.
Best Practices for Employers
- Educate Employees Early:
Include FSA eligibility and reimbursement rules in onboarding materials.
- Review Plan Documents:
Ensure your plan clearly outlines coverage start dates and reimbursement criteria.
- Encourage Timely Enrollment:
Prompt enrollment helps employees maximize their benefits and avoid ineligible claims.
Health FSAs and DCAPs are valuable benefits, but they come with strict IRS rules. Employers must ensure that only expenses incurred during active coverage are reimbursed. Clear communication and proper documentation can help avoid confusion and ensure compliance.
