The Health Care FSA helps you pay for certain IRS-approved medical expenses not covered by your insurance plan with pre-tax dollars. The maximum contribution to the Health Care FSA is $3,400 per plan year.

If any funds remain in your Health Care FSA at the end of the current plan year, you can carry over up to $680 into the next year. Your carry-over balance can be used at any time for expenses incurred in the new plan year (in addition to the elected payroll deductions). Note: You cannot use current years FSA funds to pay for medical care incurred in the previous year.

Funds you elect to contribute to the Health Care FSA are available in full on the first day of the plan year. For example, if you elect to contribute $1,000, the full election is available to you on day one. You’ll continue to pay for the election pre-tax from your paycheck throughout the plan year.

The Dependent Care FSA lets you set aside pre-tax dollars to use toward qualified dependent care. The maximum amount you may contribute to the Dependent Care FSA is $5,000 (or $2,500 if married and filing separately) per plan year. Dependent Care FSA funds become available as contributions are deposited from each paycheck. You can only be reimbursed up to the amount currently available in your account, so funds must accumulate before they can be used.