Flexible spending accounts (FSAs)
Save money for medical and dependent care expenses.
What is a flexible spending account (FSA)?
An FSA is an account that you can put money into to pay for certain out-of-pocket health care costs. You don’t pay taxes on this money. This means you’ll save an amount equal to the taxes you would have paid on the money you set aside.
It’s important to understand that in most cases FSAs have a “use it or lose it” rule. Keep this in mind to avoid losing any unspent money left in your account at the of the plan year.
Types of FSAs
How a health care FSA works
A health care FSA (HCFSA) reimburses you for eligible health care expenses for you and your eligible dependents. Eligible expenses include medical, dental, vision, hearing and prescription drug expenses. You can also use FSA funds to pay for copays, coinsurance and certain over-the-counter (OTC) items.
How a dependent care FSA works
A dependent care flexible spending account (DCFSA) can help you put aside dollars, income tax-free, for the care of children under the age of 13 or for dependent adults who can’t care for themselves. Your account is funded by payroll deductions before taxes. That money may help pay for a variety of services, including day care, nursery school, preschool, after-school or senior day care.
Unlike an HCFSA, where your full election amount is available to you at the beginning of the year, only your to-date contributions to your dependent care account are available to you. That means you may only spend the balance that you have in your account at any point in time.
How a limited purpose FSA works
A limited purpose flexible spending account (LPFSA) is a great companion to a health savings account (HSA), which you may use to pay for unforeseen qualified medical expenses. The LPFSA is just that — it has a limited purpose. It reimburses you for dental and vision expenses. You can easily pay for services at dental or vision clinics using your Optum Financial payment card.
FSA calculator
Use our FSA calculator to see how much you can save on eligible health and day care expenses.
Tax savings
Your taxable income is reduced by the amounts you deposit into your FSA accounts, up to IRS limits.
2022 limits:
- Health care FSA max IRS election: $2,850
- Dependent care FSA max IRS election:
- Individual: $2,500
- Family: $5,000
2021 limits:
- Health care FSA max IRS election: $2,750
- Dependent care FSA max IRS election:
- Individual: $2,500
- Family: $5,000
*Your FSA plan may exclude reimbursement for certain categories of items. Check your plan for specific coverage details.
The promotional codes OPTFSA7, OPTHSA5 and OPTHRA7 offered by the Optum Store is intended for the sole use by Optum Financial flexible spending arrangement (FSA) and health saving account (HSA) members when making a purchase with their FSA or HSA. Promotional codes cannot be applied to previously placed orders and cannot be combined with other promotional codes. Promotional codes are not transferable or redeemable for cash or credit. To apply a promotional code, you must enter it prior to completing the order. Failure to adhere to these terms of use may result in the transaction being voided.
Free and expedited shipping offers do not apply to shipping outside of the contiguous United States. Additional shipping restrictions may apply.
The Optum Store is an affiliate of the UnitedHealth Group family of companies.
Self-directed mutual fund investment options are made available through the services of an independent investment advisor, or your plan sponsor. Discretionary advisory services are provided by Betterment LLC, an SEC-registered investment adviser, with associated brokerage transactions provided by Betterment Securities, Member FINRA/SIPC. For details and disclosures visit betterment.com. The Schwab Health Savings Brokerage Account is offered to certain account holders through Charles Schwab & Co., Inc., Member FINRA/SIPC. For details and disclosures, visit schwab.com. Brokerage services are offered to certain accountholders through TD Ameritrade, Inc., Member FDIC/SIPC and a subsidiary of The Charles Schwab Corporation. For details and disclosures, visit tdameritrade.com.
Orders are accepted to effect transactions in securities only as an accommodation to HSA owners. Optum Financial and its subsidiaries are not broker-dealer or registered investment advisors and do not provide investment advice or research concerning securities, make recommendations concerning securities, or otherwise solicit securities transactions.
Health savings accounts (HSAs) are individual accounts offered through Optum Bank®, Member FDIC, or ConnectYourCare, LLC, an IRS-Designated Non-Bank Custodian of HSAs, each a subsidiary of Optum Financial, Inc. Neither Optum Financial, Inc. nor ConnectYourCare, LLC is a bank or an FDIC insured institution. HSAs are subject to eligibility requirements and restrictions on deposits and withdrawals to avoid IRS penalties. State taxes may apply. Fees may reduce earnings on account.
Flexible spending accounts (FSAs), dependent care assistance programs (DCAPs), health reimbursement arrangements (HRAs), Commuter and Parking Benefits, Tuition Assistance Plans, Adoption Assistance Plans, Surrogacy Assistance Plans, Wellness Benefits, and Lifestyle Accounts (collectively, “Employer-Sponsored Plans”) are administered on behalf of your plan sponsor by Optum Financial, Inc. or ConnectYourCare, LLC (collectively, "Optum Financial") and are subject to eligibility and restrictions. Employer-Sponsored Plans are not individually owned and amounts available under the Employer-Sponsored Plan are not FDIC insured. This communication is not intended as legal or tax advice. Federal and state laws and regulations are subject to change. Please contact a legal or tax professional for advice on eligibility, tax treatment, and restrictions. Please contact your plan administrator with questions about enrollment or plan restrictions.
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The promotional code OPTFSA7, OPTHSA5 and OPTHRA7 cannot be applied to previously placed orders, and cannot be combined with other promotional codes. Additionally, the code cannot be used for prescription drugs or virtual care visits. Promotional codes are not transferable or redeemable for cash or credit. To apply a promotional code you must enter it prior to completing the order.
Free and expedited shipping offers do not apply to shipping outside of the contiguous United States. Additional shipping restrictions may apply.
The Optum Store is an affiliate of the UnitedHealth Group family of companies.
Your employer sponsored plan may exclude reimbursement for certain categories of items. Check your plan document and summary plan description or contact your benefits department for specific coverage details.
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