Keep more money with a Flexible Spending Account

Enrolling in an FSA saves you money by lowering your overall taxable income while simultaneously creating a reserve of funds for your eligible healthcare and dependent care out-of-pocket expenses. You elect the annual amount you want to contribute for the plan year which will be deducted on a per-paycheck basis. Then, use your FSA to pay for eligible out-of-pocket costs incurred during the plan year.

Estimate carefully! You can’t change your FSA election amount mid-year unless you experience a qualifying event.

Your FSA Options

Flexible Spending Accounts (FSAs) allow you to set aside pre-tax dollars to pay for healthcare expenses you expect to have in the coming year. Affirm offers you two FSA options:

Healthcare FSA

The Healthcare FSA allows you to pay for qualifying health-related expenses such as copays, prescriptions, dental services, glasses, and more.

Dependent Care FSA

The Dependent Care FSA allows you to pay for qualifying dependent care expenses for children under age 13 or a spouse or relative who is incapable of self-care and lives with you.

How does the Forma Healthcare FSA work?

You estimate what you and your family’s out-of-pocket costs will be for the coming year. Think about what out-of-pocket costs you expect to have for eligible expenses such as office visits, surgery, dental and vision expenses, prescriptions, and even eligible drugstore items.
You can contribute up to $3,050, the 2023 annual limit set by the IRS. Contributions are deducted from your pay pre-tax, meaning no federal or state tax on that amount.
- The 2024 contribution limit will increase to $3,200.
During the year, you can use your FSA debit card to pay for services and products. Withdrawals are tax-free as long as they’re for eligible healthcare expenses.
If you don’t spend all the money in your account, you can only roll over up to $610 in 2023.
- The 2024 rollover limit will increase to $640.

Visit IRS.gov for full rules, and regulations.

Forma Plan Benefit Summary

How does the Forma Dependent Care FSA (DCFSA) work?

If eligible, you can contribute up to $5,000 per year with pre-tax payroll deductions.
- If you are married and filing separately, you may contribute up to $2,500 per year per parent.
- The 2023 contribution limit will stay the same ($5,000).
You can pay your dependent care provider directly from your FSA account, or you can submit claims to get reimbursed for eligible dependent care expenses you pay out of pocket.
Unlike your Healthcare FSA, your Dependent Care FSA is not front-loaded and is funded throughout the year through each pay period. This means that you are able to get reimbursed up to the current balance in your account.

Money contributed to a DCFSA must be used for expenses incurred during the same plan year. Unspent funds will be forfeited.

Visit IRS.gov for full rules, and regulations.