Flexible Spending Accounts (FSAs)
Flexible Spending Accounts (FSAs) offer another way to save money on health care and dependent care expenses. You may submit expenses incurred by any of your dependents, whether or not they are covered by the insurance plans you have through your employer. Employees do not need to be enrolled in either medical plan to participate in an FSA.
Three types of accounts:
Health Care FSA
Limited Purpose FSA
Dependent Care FSA
Are You Eligible?
Health Care FSA
Federal regulations do not allow participation in an HSA and this type of account. Eligible health care expenses include many of the out-of-pocket expenses you pay to maintain your health and well-being. These include deductibles and coinsurance expenses not covered by your medical plan, expenses for glasses or contact lenses, and more.
2026 HCFSA Contribution Limit:
$3,400
Limited Purpose FSA
The Limited Purpose FSA is for those with an HSA. It's specifically for eligible dental and vision expenses only like eye exams, glasses, contact lenses, dental cleanings, and orthodontia.
2026 LPFSA Contribution Limit:
$3,400
Dependent Care FSA
You may use pre-tax dollars from your DCFSA to pay expenses for care when the services enable you and your spouse to work outside of the home. These include expenses for the care of a dependent child, spouse or elderly parent inside your home. Also included are baby-sitters, nursery schools, and day care centers.
Only the portion of expenses which enable you to remain employed are eligible. Educational expenses are not eligible.
2026 DCFSA Contribution Limit:
$7,500
Or $3,750 if you are married and file a separate tax return
“Use it or Lose it” and FSA Rollover Provision
We want to help you get the most out of your Flexible Spending Account (FSA). Here are a few important reminders to keep in mind:
- Submit Your Claims by March 31 Any eligible expenses you incur during the Plan Year must be submitted by March 31 of the following year. After that, any unused funds may be forfeited, so don’t miss out!
- As we transition from Optum to Inspira for year 2026, all the following FSA Rollover provision and run out periods still apply: “Use It or Lose It” – With a Helpful Twist Per IRS rules, unused FSA funds typically don’t carry over. But good news! NFM Lending has opted into the FSA rollover provision, which means you can carry over up to $680 of unused Health Care and Limited Purpose FSA funds into the next Plan Year.
- Planning to Switch to an HSA? If you choose to contribute to an HSA in the next Plan Year, you may not be able to keep any rollover funds from your Health Care FSA. Be sure to plan ahead based on your expected expenses.
- Re-Enroll Each Year FSA elections don’t roll over automatically. If you want to participate again next year, you’ll need to actively enroll during Open Enrollment.
Taking a few minutes to estimate your upcoming expenses can help you make the most of your FSA—while avoiding any surprises later.
Questions?
If you have specific questions related to eligible and non-eligible FSA expenses call Inspira at 844-729-3539 or inspirafinancial.com.