Flexible Spending Account
Pre-tax account for medical or dependent care expenses. Use-it-or-lose-it. 2024 limit: $3,200.
Who pays it
Anyone enrolled in their employer's medical FSA. Unlike an HSA, no HDHP required.
How much
2024 limit: $3,200. 2025: $3,300.
Where it appears on your W-2
Not separately reported — already excluded from Box 1, Box 3, Box 5 wages.
Tax impact
Pre-tax. Reduces federal, Social Security, and Medicare wages. Use-it-or-lose-it: most plans require you to spend by year-end (some allow $640 carryover or a 2.5-month grace period).
Common questions about FSA
Can I have an FSA and an HSA at the same time?
Generally no. A limited-purpose FSA (dental/vision only) can be paired with an HSA, but a general medical FSA disqualifies you from HSA contributions.
What happens to unused FSA money?
Forfeited to your employer unless your plan has a carryover (~$640) or grace period (2.5 months). Plan your contribution conservatively.
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