2 WATCH THIS FSA VIDEO TO LEARN MORE VIEW ELIGIBLE EXPENSES LEARN MORE ABOUT YOUR DCA F L E X I B L E S P E N D I N G A C C O U N T S Flexible Spending Accounts ( FSAs ) are set up to pay for many out - of - pocket medical expenses with tax - free dollars . The FSA account holder sets aside a pre - tax dollar amount for the year used to pay for medical expenses . Unused FSA funds can expire at the end of the year , so it is important to calculate expected expenses as accurately as possible prior to adding funds . 1 HEALTHCARE FSA The FSA can be paired with a Copay Plan . Employees who enroll in the HDHP are NOT eligible for the Healthcare FSA . FSA funds can be used on various medical , dental , and vision related expenses – the benefit is to use tax - free dollars on these purchases . The IRS has set the contribution maximum to $ 3 , 400 annually . DEPENDENT CARE ACCOUNT ( DCA ) FSA A DCA can also be paired with BOTH the HDHP and the Copay Plan . A DCA is a tax - free account for dependent care expenses such as daycare , preschool , or day camps for any dependent under the age of 13 or who are physically or mentally incapable of self - care . The IRS has set the contribution maximum at $ 7 , 500 per household and $ 3 , 750 for individuals filing separately .