Flexible Spending Accounts

Take control of your health care and dependent care expenses with a Flexible Spending Account (FSA). At the start of the plan year, you elect the amount you want to contribute, which is set aside pre-tax to cover eligible expenses like medical, dental, vision, and childcare costs. This tax-advantaged benefit helps you save money and manage your budget more effectively.

Health Care FSA

A Health Care FSA makes it easy to manage health care costs for you and your family. At the start of the plan year, you elect how much to contribute, with funds deducted from your paycheck pre-tax. The full annual amount you elect is available to use right away—you don’t have to wait for the funds to accumulate.

When you incur an eligible expense, simply use your WEX Benefits Card for payment or submit documentation for reimbursement. Eligible expenses include copays, prescriptions, and more.

Dependent Care FSA

A Dependent Care FSA lets you set aside pre-tax dollars to cover eligible expenses for childcare or eldercare. This account can be used for children aged 12 and under, or dependents who need care while you and your spouse (if married) work or seek employment. Qualifying care includes babysitters, live-in caregivers, and licensed daycare centers.

Reimbursements are issued after care services are provided, and funds are deposited into your account, helping you save money while managing dependent care costs.

Limited Purpose FSA

A Limited Purpose FSA is a great way to save on dental and vision expenses while keeping your Health Savings Account (HSA) focused on other medical needs. To be eligible for this account, you must be enrolled in the HDHP with HSA medical plan.

With a Limited Purpose FSA, you can reduce out-of-pocket costs and maximize your overall savings.

Important FSA Rules

FSAs offer valuable tax benefits but are subject to IRS regulations such as:

• Plan Year and Deadlines: The plan year for Health Care and Dependent Care FSAs runs from January 1 to December 31. You can incur eligible expenses through March 15 of the following year and must submit claims by March 31.
• Use-It-or-Lose-It Rule: FSAs are subject to the IRS “Use-It or Lose-It” policy. Any unused funds remaining after the deadlines will be forfeited.
• Contribution Changes: Once enrolled, you can only adjust your contribution amount if you experience a qualifying life event.
• Separate Accounts: Each FSA is independent, and funds cannot be transferred between accounts.

Keep these rules in mind to make the most of your FSA.

Health Savings Account (HSA)

A Health Savings Account (HSA) is a tax-advantaged savings account that helps you manage healthcare expenses. Available to those enrolled in a High Deductible Health Plan (HDHP), an HSA allows you to set aside pre-tax dollars to cover eligible medical, dental, and vision costs.

How it works:

• Contribute Tax-Free: Save money by contributing pre-tax dollars directly from your paycheck.
• Grow Your Savings: Funds roll over year after year and can even earn interest or be invested for future growth.
• Spend on Eligible Expenses: Use your HSA to pay for copays, prescriptions, and other qualified healthcare costs for you and your family.
• Invest for the Future: Once your HSA balance reaches $1,000, you can invest in a variety of no-load mutual funds, similar to 401(k) investments. Learn more by logging in to your  WEX Leap account.
• Take It with You: Your unused HSA balance is yours to keep, even if you leave iHerb or retire.

Unlike an FSA, your HSA funds never expire, giving you more flexibility and long-term savings for your healthcare needs.