FSA Contribution Calculator
Estimate your tax savings from a Flexible Spending Account contribution.
How much can I contribute to a healthcare FSA?
A healthcare Flexible Spending Account (FSA) lets you set aside pre-tax money from your paycheck for qualified medical expenses, and the IRS sets an annual contribution limit that's typically adjusted for inflation — recently in the neighborhood of $3,200 per year. This calculator caps your planned contribution at that illustrative limit and estimates the tax savings by multiplying your contribution by your marginal tax rate, since FSA contributions are deducted from your paycheck before income and payroll taxes are applied. Always confirm the current-year limit with your employer's plan documents, since it changes periodically.
Why does the "use it or lose it" rule matter?
Unlike a Health Savings Account (HSA), where unused funds roll over indefinitely, most healthcare FSAs are "use it or lose it" — meaning any money left in the account at the end of the plan year (beyond a small carryover some employers allow, or a short grace period) is forfeited back to the employer. This makes an FSA a great tool for predictable, near-term medical expenses like known prescriptions, dental work, or planned procedures, but a riskier choice if your medical spending is unpredictable. Estimate your expected medical costs carefully before deciding how much to contribute.
FSA vs. HSA: what's the real difference?
Both accounts let you pay for medical expenses with pre-tax money, but an FSA doesn't require a high-deductible health plan and is generally offered more broadly, while an HSA requires HDHP enrollment but offers the major advantage of unlimited rollover and even investment growth over time. If your employer offers both, compare your expected annual medical spending against each account's rules — this tool focuses specifically on the FSA side of that decision.
Frequently Asked Questions
What is the FSA contribution limit?
As a general planning guide, the healthcare FSA annual limit has recently been around $3,200 per year. This figure is adjusted periodically by the IRS, so confirm the current-year limit with your employer's plan documents.
Do FSA funds roll over to the next year?
Generally no. Most FSAs are "use it or lose it," meaning unspent funds are forfeited at year-end, though some employers offer a limited carryover amount or a short grace period — check your specific plan's rules.
What's the difference between an FSA and an HSA?
An FSA doesn't require a high-deductible health plan but typically forfeits unused funds each year. An HSA requires HDHP enrollment but lets unused funds roll over indefinitely and even be invested for growth.
Are FSA contributions tax-deductible?
FSA contributions are typically deducted from your paycheck before federal income tax and payroll taxes are applied, which is why funding an FSA reduces your taxable income and effectively saves you money at your marginal tax rate.
What can I buy with FSA funds?
Qualified medical, dental, and vision expenses not covered by insurance — including copays, prescriptions, and many over-the-counter items — are generally eligible. Check your plan's specific list of eligible expenses before assuming something qualifies.
What happens if I don't spend my FSA money in time?
Unless your employer offers a grace period or limited carryover, unspent FSA funds are forfeited back to your employer at the end of the plan year — this is the key "use it or lose it" risk to weigh against the tax savings.
Can I change my FSA contribution mid-year?
Generally only during open enrollment or after a qualifying life event such as marriage, birth of a child, or loss of other coverage — FSAs don't typically allow contribution changes at will during the plan year.
How accurate is this FSA calculator?
It's a planning estimate based on illustrative, commonly-cited IRS limits and your entered tax rate. Actual limits and your real savings depend on your full tax picture and employer plan rules, so confirm details with your HR department or a tax professional.