Flexible Spending Accounts (FSAs)
Flexible Spending Accounts (FSAs) allow you to pay for eligible expenses using tax-free dollars. Important: There is a “use it or lose it” rule imposed by the IRS.
Grace Period: Stack AV allows employees a grace period of 75 days after the plan year ends to incur and file claims for Health Care FSA and Dependent Care FSA (3/15/2026).
Run Out Period: You have 90 days after the plan year ends to file claims. For the 2025 plan year, this means you have until March 31, 2026, to submit claims.
The Two Types of FSAs Are:
Plan Information
Plan Name: XXXX
Policy Number: #XXXX
Effective Date: XX/XX/XXXX
Network: XXXX
Healthcare FSA
Contribute up to $3,300 per year, pretax, to pay for copays, prescription expenses, lab exams and tests, contact lenses and eyeglasses.
Dependent Care FSA
Contribute up to $5,000 per year ($2,500 if married and filing separate tax returns), pretax, to pay for daycare expenses associated with caring for elder or child dependents that are necessary for you or your spouse to work or attend school full-time. You cannot use your Healthcare FSA to pay for Dependent Care expenses.
For Dependent Care FSA, an eligible dependent is defined as a child under 13 or anyone you claim as an IRS tax dependent who lives with you and is unable to care for themselves (e.g., a disabled child over 13, disabled spouse, or elderly parent).
Claim Submission Process
If you enroll in the Healthcare FSA or Dependent Care FSA, you will receive a WEX debit card to use for eligible purchases. You can also reimburse yourself online through WEX’s member portal.
You may be required to provide WEX with documentation to substantiate your debit card transactions. Save your receipts!
For Dependent Care FSA, an eligible dependent is defined as a child under 13 or anyone you claim as an IRS tax dependent who lives with you and is unable to care for themselves (e.g., a disabled child over 13, disabled spouse, or elderly parent). You can use the WEX member portal to submit claims and reimburse yourself. Please remember, documentation will be required.
How Much Could You Save?
Here’s an example. Let’s say Tom decides to set aside $2,000 in an FSA for the year. Normally, on that money, he’d pay $560 in federal income tax, $100 in state income tax, and $153 in FICA tax. So, by contributing that $2,000 to his FSA, he’ll get an $813 tax savings for the year.
Without the FSA, Tom would pay:
- 28% in federal income tax: $560 savings
- 5% in state income tax: $100 savings
- 7.65% in Federal Insurance Contributions Act (FICA) tax: $153 savings
His total tax savings for the year with an FSA: $813