A Flexible Spending Account (FSA) lets you set aside money tax-free to pay for eligible healthcare or dependent care expenses—helping your dollars go further. FSAs are a great way to plan ahead for things like doctor visits, prescriptions, daycare, and more.
Each type of FSA has its own rules for how funds can be used, as well as annual minimum and maximum contribution limits. The key? You decide how much to contribute, and the savings start right away. FSAs are “use it or lose it”. Any unused funds will have a 60-day run out period and carryover up to the IRS maximum of $680. Once the 60 days are up, any remaining balance is forfeited.
Health Care FSA (HCFSA)
Available When Enrolled in a PPO Medical Plan Option
The HCFSA funds are used to pay for qualified out-of-pocket medical expenses for you and your eligible dependents. That includes things like doctor visits, prescriptions, copays, and even over-the-counter medications.
You choose how much to contribute each year—within IRS limits—and those funds are available to use right away at the start of the plan year. It’s a smart way to lower your taxable income and save on the care you already plan to use.
| The Maximum Annual HCFSA Contribution Limits for 2026 | |
| MAXIMUM ANNUAL CONTRIBUTION | $3,400 |
| LAST DAY TO INCUR CHARGES | March 1, 2027 |
LIMITED PURPOSE FSA (LPFSA)
Available When Enrolled in a CDHP Medical Plan Option with HSA
If you enroll in one of the CDHP medical plans with an HSA, you can also enroll in a Limited Purpose Flexible Spending Account (LPFSA). Funds from the LPFSA can only be used to pay for eligible dental and vision expenses until you reach your deductible. Then, it can be used to pay for eligible medical expenses.
| The Maximum Annual LPFSA Contribution Limits for 2026 | |
| MAXIMUM ANNUAL CONTRIBUTION | $3,400 |
| LAST DAY TO INCUR CHARGES | March 1, 2027 |
DEPENDENT CARE FSA (DCFSA)
Support for Working Families and Available to Eligible Colleagues Regardless of Medical Plan Enrollment.
A Dependent Care Flexible Spending Account (DCFSA) lets you set aside money tax-free to pay for eligible expenses like daycare, pre-school, after-school programs, or elder care for dependents while you work. Eligible dependents who may qualify are children under the age of 13, disabled dependents or an older parent in eldercare (not a nursing home or long-term care).
You may contribute up to $7,500 each year when married filing jointly or $3,750 each year when married filing separately. It’s a great way to reduce your taxable income while covering the costs of care you rely on every day.
Important Things to Note About FSAs
- If you enroll in a HCFSA or LPFSA, you will receive a debit card from HealthEquity to pay for your eligible expenses. You may also submit manual reimbursement requests.
- Over-the-counter (OTC) medications generally require a prescription for reimbursement through FSAs.
- Do the math. Estimate your eligible expenses carefully before enrolling to avoid forfeiting unused funds that cannot be carried over.
- Don’t forget to keep your receipts in case you need to verify an expense!
For a complete list of eligible expenses refer to IRS Publication 502 and IRS Publication 503.
Learn More With HealthEquity: Your Partner for FSAs and HSAs
Saks Global partners with HealthEquity, a trusted leader in health and financial wellness, to help you make the most of your Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs). Through HealthEquity, you can easily manage your pre-tax health dollars, pay for eligible expenses, and track your account activity— all in one convenient place.
Visit www.healthequity.com to explore a variety of resources – from a library of helpful articles to available webinars – Health Equity helps you maximize your savings and spending accounts. You can also reach out member services at 877-223-5329.
Check out this Member Guided Tour to walk through logging into your HealthEquity account for the first time.
With 24/7 access to your account, mobile tools, and expert support, HealthEquity makes it simple to plan, save, and spend smarter—helping you take control of your health and your financial well-being.
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*All FSAs are subject to IRS nondiscrimination testing. If testing requirements are not met, contributions for certain highly compensated employees (HCEs) may be limited or refunded to ensure the plan remains compliant.
