Use it or lose it
It’s important to understand that in most cases flexible spending accounts (FSAs) do have a “use it or lose it” rule. That means you would lose any money left in your account at the end of the plan year. See the information below on how to help manage your FSA funds.
Tax savings
Your taxable income is reduced by the amounts you deposit into your FSA accounts, up to IRS limits.
2024 limits:
- Health care FSA max IRS election: $3,200
- Dependent care FSA max IRS election:
- Individual: $2,500
- Family: $5,000
2023 limits:
- Health care FSA max IRS election: $3,050
- Dependent care FSA max IRS election:
- Individual: $2,500
- Family: $5,000
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