HSA/FSA
UTILIZING YOUR HEALTH CARE SAVINGS AND SPENDING ACCOUNTS
Health care saving and spending accounts are an important employee benefit that allow employees to set aside pre-tax money to pay for out-of-pocket healthcare expenses.
Please refer to the resources below to learn more about these accounts, contribution limits, eligible expenses, and more!
| HEALTH SAVINGS ACCOUNT (HSA) | HEALTH CARE FLEXIBLE SPENDING ACCOUNT (HCFSA) | DEPENDENT CARE FSA (DCFSA) |
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| Benefits | Contributions are tax deductible, interest and capital gains on investments are tax-free. | Employee contributions are exempt from federal and FICA taxes, as well as most state and local tax. | Employee contributions are exempt from federal and FICA taxes, as well as most state and local tax. |
| Plan Requirements | Must be enrolled in a qualifying high-deductible medical plan (HDHP). | No plan requirements. | Must claim dependent child(ren) on your taxes. |
| Account Ownership | Employee | Employer | Employer |
| Account Integration | Can be combined with an LPFSA. | No integration. | Can be combined with HSA. |
| Rollover | Rolls over year-over-year. | Up to $680. | Does not rollover. |
| Accessing Funds | Current balance of the account may be used. | Total amount elected for the plan year available on first day of plan. | Current balance of the account may be used. |
| Portability | Can be ported to new employer. | Cannot be ported to new employer. | Cannot be ported to new employer. |
HEALTH SAVINGS ACCOUNT (HSA)
An HSA is a tax-advantaged account available to employees enrolled in a high-deductible health plan (HDHP). HSAs allow account holders to contribute pre-tax dollars, which can then be used to pay for qualified medical expenses, including deductibles, copayments, and certain other expenses. They are designed to give you greater control in managing your health and funding your health care services. Funds in HSAs also roll over from year to year and can even be invested for potential growth.
Important reminder: Your HSA will be administered through Wex.
HEALTH SAVINGS ACCOUNT
Watch this video to learn more information about HSAs.
HSA MAXIMUM CONTRIBUTION LIMITS
| 2026 IRS CONTRIBUTION LIMIT | MFB HDHP PPO ANNUAL CONTRIBUTION | MFB HDHP PPO BI-WEEKLY CONTRIBUTION |
EMPLOYEE MAXIMUM CONTRIBUTION | |
| Employee | $4,400 | $500 | $19.23 | $3,900 |
| Employee + Spouse or Child(ren) | $8,750 | $750 | $28.84 | $8,000 |
| Employee + Family | $8,750 | $1,000 | $38.46 | $7,750 |
| If you are 55 years old or older, you can make an additional catch-up contribution of $1,000 per year. | ||||
HSA RULES TO REMEMBER
Eligibility
Anyone who is:
- Covered by a high-deductible plan (HDHP)
- Not enrolled under another medical plan that's not an HDHP
- Not entitled to, eligible for, and/or enrolled in Medicare benefits
- Not eligible to be claimed on another person's tax return
- Not enrolled in an FSA plan, unless it's a limited purpose FSA
Taxes
If you use funds for qualified health care expenses, you will pay no taxes. However, if you use the money for other expenses, you will pay a tax and a penalty fee.
Contribution Change
You make contributions to your HSA through regular payroll deductions, and you may change the amount at any time. Please contact the HR team for assistance.
Eligible Expenses
Please visit hsastore.com for a comprehensive list of eligible expenses.
FLEXIBLE SPENDING ACCOUNT (FSA)
An FSA allows you to set aside a portion of your pay pre-tax to use for eligible expenses that are not covered by insurance or only partially covered. You do not need to be enrolled in a high-deductible health plan (HDHP) to be eligible for an FSA.
Important reminder: If you or your spouse is enrolled in an HSA, you are only eligible for the dependent care FSA, not the health care FSA.
FLEXIBLE SPENDING ACCOUNT
Watch this video to learn more information about FSAs.
DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT
Watch this video to learn more information about DCFSAs.
FSA CONTRIBUTION LIMITS & NEW EMPLOYER CONTRIBUTION
NEW for 2026! Mary Free Bed will provide an employer contribution match of $500 for employees that enroll/elect $500 or more for the 2026 Plan Year in a Dependent Care Flexible Spending Account.
LIMITS
| Health Care FSA | Dependent Care FSA |
| $3,400 | $7,500 |
MARY FREE BED CONTRIBUTION
| Dependent Care FSA |
| 500 |
FSA RULES TO REMEMBER
Health FSA Carryover Provision
You can carry over up to $680 of any unused balance from the previous plan year as long as you re-enroll in the health FSA for the current plan year. Per IRS rules, there is no carryover allowed for the Dependent Care FSA.
Run-Out Period (Proof of Loss)
Health Care FSA: Active participants have until March 31, 2026 to submit expenses incurred during the plan year. If you terminate employment during the plan year, you have 90 days from your separation date to submit eligible expenses for reimbursement.
Dependent Care FSA: Active participants have until March 31, 2026 to submit expenses incurred during the plan year. If you terminate employment during the plan year, you have 90 days from your separation date to submit eligible expenses for reimbursement.
Eligible Expenses
Please visit fsastore.com for a comprehensive list of eligible expenses.