A general health FSA is the most common flexible spending account. It's a financial arrangement that enables employees to pay for qualified healthcare expenses with tax-free dollars.
Eligibility
It's simple to have a general health FSA; your employer just needs to offer it!
Some important notes about FSAs and HSAs:
You or your household can't have a general health FSA and a health savings account (HSA) at the same time, as they cover the same expenses.
You or your household can have an FSA with a more limited purpose (dependent care or dental & vision) and an HSA.
You can have a general health FSA and a more limited purpose (dependent care or dental & vision) FSA.
Limits
| Total Maximum Employee Contribution | Max Employer Contributions | Maximum Carryover Limit |
2025 | $3,200/yr | Up to $500 → $1:$1 | $640 |
2026 | $3,300/yr | Up to $500 → $1:$1 | $660 |
Note on Employer Contributions
Employers can make up to $500 in nonelective contributions to a health FSA to preserve the plan's excepted benefit status. If an employer's contribution matches employee contributions, employers can contribute more than $500.
Employer contributions do not count toward the maximum contribution limit.
While there is a general maximum carryover limit for FSAs, it is up to your employer to decide if they will allow carryovers. Some employers may choose to allow up to a two-month extension to the FSA spending deadline instead of allowing rollovers.
Language Note
You may also see "rollover" in reference to "carryover." Same thing.
Eligible expenses
A general health FSA can be used for many eligible expenses. Here are some helpful resources:
Here is a complete list of eligible expenses.
Plan ahead with this FSA calculator to ensure you maximize your benefit.
Ineligible expenses
Insurance premiums or costs for temporary continuation of coverage (TCC) cannot be paid with FSA funds; however, deductibles, copayments, and coinsurance for your health plan can be.