Department of Management Services

Important Considerations

Use the tax savings calculator to help you make your choices.

Based on federal government and state plan rules:

  • You must use any money you contribute to a healthcare FSA or a limited purpose FSA on expenses incurred by December 31 of the plan year and submit all claims by April 15 of the next plan year. If any funds are remaining, up to $500 will be carried over into the following plan year. Amounts over $500 will be forfeited.
  • You must use any money you contribute to a dependent care FSA on expenses incurred by the end of the plan year or through the March 15 grace period. Otherwise, you lose any remaining money.
  • You cannot move money between the two accounts during the year. This means you can't use your contributions to a healthcare FSA for a dependent care expense or vice versa.
  • You may only change your FSA contributions during the plan year if you have a qualifying status change event or during open enrollment.
    • If you enroll in a high deductible health plan, you are automatically enrolled in the HSA so you can take advantage of the state's HSA contribution.
    • If you need additional dollars for dental, vision, preventive medical or over-the-counter health expenses not covered by the HSA, consider the limited purpose FSA. Remember, the HSA carries forward year-to-year and earns interest.
  • You may enroll in either a healthcare FSA or a limited purpose FSA.
  • The minimum annual deduction amount for each flexible spending account is $60.