HEALTHCARE FSA LIMITED PURPOSE FSA Flexible Spending Accounts Flexible Spending Accounts (FSA) are set up to pay for many of out-of-pocket medical expenses with tax-free dollars. The FSA account holder sets aside a pre-tax dollar amount for the year used to pay for medical expenses. Unused FSA funds can expire at the end of the year. 1 Healthcare FSA An FSA is an alternative to an HSA. FSAs are typically paired with a PPO plan while an HSA is paired with an HDHP. FSA funds can be used on various medical, dental, and vision related expenses. The IRS contribution maximum for 2026 will be $3,400. 2 Limited Purpose FSA A limited purpose FSA is only for dental and vision expenses. If you elect to participate in the High Deductible Health Plan and contribute to a Health Savings Account (HSA), you qualify for this FSA, not the full healthcare FSA. The IRS contribution maximum is $3,400. Watch This FSA Video to Learn More 1 2 View Eligible Expenses DEPENDENT CARE FSA 3 3 Dependent Care Account (DCA) FSA A DCA is a tax-free spending account for dependent care expenses such as daycare, preschool, or day camps for any dependent under the age of 13 or who is physically or mentally incapable of self-care. The IRS contribution maximum for 2026 will be $7,500 for single individuals and couples filing jointly, and $3,750 for individuals who are married filing separately.