Flex Spending
Accounts (FSAFEDS).
The Federal Flexible Spending Account Program lets active employees set aside pre-tax dollars for health care and dependent care expenses — saving an average of 30% on eligible costs. Annuitants cannot participate, making Open Season elections critical before you retire.
Three FSA types,
one program.
FSAFEDS offers three distinct flexible spending account options. Each serves a different purpose and has different eligibility requirements. More than 420,000 federal employees use pre-tax FSA dollars to reduce their tax burden on health care and dependent care costs.
FSAFEDS allows eligible federal employees to set aside part of their salary before taxes to pay for predictable out-of-pocket expenses. Because contributions are made pre-tax, you avoid payroll taxes on that money — effectively saving an average of 30% on those expenses compared to paying after tax.
Annuitants cannot participate in an FSA — an annuity is not considered salary under IRS rules. Use your FSA benefits fully before retiring.
Health Care FSA
Eligible medical, dental & vision expenses
Pay for out-of-pocket health care costs not covered by your FEHB plan, FEDVIP, or other insurance — with pre-tax dollars. Full election available on day one of the plan year.
Dependent Care FSA
Day care, preschool & elder care expenses
Pay for eligible dependent care services — preschool, summer day camp, before/after-school programs, child or adult daycare — so you can continue to work.
Limited Expense FSA
Dental & vision only — for HDHP + HSA holders
Designed for employees enrolled in a High-Deductible Health Plan (HDHP) with a Health Savings Account (HSA). Limits reimbursements to dental and vision expenses only to preserve HSA eligibility under IRS rules.
2026 limits, rules
& how each account works.
Health Care FSA (HCFSA)
The HCFSA is a pre-tax benefit account for eligible medical, dental, and vision care expenses not covered by your health care plan or elsewhere. Your full annual election is available immediately on January 1 — you do not need to wait for the money to accumulate.
How the tax savings work
Contributions to your HCFSA are not subject to payroll taxes. If you are in a combined federal and state tax bracket of 30%, you effectively receive $0.30 in tax savings for every $1.00 you contribute — meaning $3,400 in contributions could save you over $1,000 in taxes on expenses you were going to pay anyway.
After enrollment, funds are automatically withdrawn from each paycheck before taxes are deducted. If both you and your spouse are active Executive Branch employees, you may each contribute up to the maximum independently.
Dependent Care FSA (DCFSA)
The DCFSA covers eligible dependent care services — child and adult daycare, preschool, summer day camp, before/after-school programs. It is designed to help you continue working while managing care costs.
2026 DCFSA contribution limits
$7,500 per household — if you are married filing a joint return, or if you file as single or head of household.
$3,750 per individual — if you are married and file separate tax returns. The minimum annual election is $100.
See the eligible dependent care options list at FSAFEDS.com for a full list of qualifying expenses.
Limited Expense Health Care FSA (LEX HCFSA)
The LEX HCFSA is specifically for employees enrolled in a High-Deductible Health Plan (HDHP) with a Health Savings Account (HSA) — or whose spouse is in a non-FEHB HDHP with an HSA.
Why HSA holders need this instead of the regular HCFSA
IRS rules prohibit contributing to an HSA while covered by a general-purpose Health Care FSA. The LEX HCFSA solves this by limiting FSA reimbursements to qualifying dental and vision expenses only — which allows you and your spouse to participate in both an HSA and an FSA simultaneously, maximizing your total tax-advantaged savings.
Eligibility & enrollment
Who can participate
Active employees of Executive Branch agencies, or agencies that have adopted the Federal Flexible Benefits Plan ("FedFlex"). You must be eligible for FEHB — actual FEHB enrollment is not required for HCFSA or LEX HCFSA.
Annuitants cannot participate. Under the IRS Code, annuitants (except re-employed annuitants working full-time) are ineligible — an annuity is not considered salary for FSA purposes.
Enrollment — annual Open Season + 60-day window
Annual Open Season (November/December): All eligible employees can enroll or re-elect each year. Enrollments take effect January 1 of the following year. Enrollment does not carry over automatically — you must actively re-elect each year.
New employees must enroll within 60 days after becoming eligible, but before October 1 of the calendar year.
To enroll or get more information: visit FSAFEDS.com or call 1-877-372-3337 (TTY: 1-800-952-0450).
Carryover rules — don't lose your money
Plan carefully to avoid forfeiture
Each fall during Open Season, review your actual spending from the current year. Contribute only what you are confident you will spend — plus up to the $680 carryover cushion. If you have unused funds approaching year-end, identify any remaining eligible expenses (dental work, glasses, prescription refills) and submit claims before December 31.
FSAFEDS tools
& references.
The FSAFEDS website, OPM program guidance, and the federal employee FSAFEDS guide for understanding how to maximize your accounts.
FSAFEDS.com — official program website, enrollment & eligible expenses
OPM Flexible Spending Accounts — official program overview
FSAFEDS — Eligible Dependent Care Expenses list
Federal Employees FSAFEDS Guide — comprehensive overview
FSAFEDS: 1-877-372-3337 | TTY: 1-800-952-0450
Call to enroll, ask questions, or get help with your FSAFEDS account.