Expenses such as deductibles and copays can quickly add up, and dependent daycare or elder care expenses can be even more expensive! Flexible Spending Accounts are a tax-free way to pay health care and dependent care expenses you would typically pay out-of-pocket. The contributions you set aside are not taxed, so you save money.

Each year you would like to participate in the Health Care or Dependent Care FSAs, you must select the amount you want to contribute to either or both accounts. Deductions will come from your paychecks in equal installments throughout the year and be deposited into your account(s).

You may contribute $120 – $3,300 to a Health Care FSA and up to $5,000 ($2,500 if you are married and file your taxes separately) to a Dependent Care FSA. Both accounts function separately.

Eligible Expenses

Eligible Health Care FSA expenses include medical, dental, and vision expenses not covered under your health care plans. Some eligible expenses include acupuncture, birthing classes, chiropractic care, deductibles and copays, dental and orthodontia, frames and contact lenses, prescriptions, and physical therapy. A full list of eligible expenses can be found in Publication 502 at irs.gov.

Eligible Dependent Care FSA expenses are those that allow you and your legal spouse to work or attend school full-time. These services generally include nursery and daycare, preschools, after-school care, babysitters, and caregivers for disabled dependents. To be eligible, caregivers and facilities must either have a Social Security Number or a Tax ID number respectively.

FSA Plan Highlights

• Health Care FSAs have a convenient debit card so you don’t have to wait for reimbursement.
• Your full Health Care FSA election amount is available to you immediately.
• Dependent Care FSA funds are available as you contribute to your account.
• Reimbursements (with receipts) can be requested at naviabenefits.com or through the MyNavia app.
• The MyNavia mobile app allows you to manage and access your balance right from your smartphone.

Important Rules to Keep in Mind for the 2025-26 Plan Year

FSAs offer significant tax advantages but are subject to strict IRS regulations:

• The IRS has a strict “use it or lose it” rule: If you do not use the full amount in your FSAs by the end of the grace period on September 15, 2026, you will lose any remaining funds.
• Once you enroll in the FSAs, you cannot change your contribution amount during the plan year unless you experience a Qualifying Life Event.
• You cannot transfer funds from one FSA to another.
• Eligible dates of service must be between July 1, 2025 and September 15, 2026. Claims must be submitted for reimbursement by September 30, 2026.