Health flexible spending arrangements (FSAs) and health savings accounts (HSAs) provide tax-favored reimbursement of qualifying medical expenses, and dependent care assistance plans (DCAPs) provide tax-favored reimbursement of qualifying daycare expenses. The IRS limits the amount that individuals may benefit from these arrangements on a tax-favored basis, and each of these arrangements is subject to different rules with respect to annual contribution and reimbursement limits, which is a common source of confusion. Above are the details of how the annual contribution and reimbursement limits apply for each of these arrangements.