Flexible Spending Accounts (FSA) are State of Iowa benefits that allow eligible employees to pay for eligible health care expenses and dependent care expenses with pretax dollars. Most employees save at least 30% on each dollar that is set aside in this benefit.
Take advantage of this great tax savings benefit.
How does FSA work?
You decide how much to set aside for health and/or dependent care expenses up to the annual limits (2025 Health FSA limit = $3,200; 2025 Dependent Care FSA limit = $5,000*). This amount is divided by the number of payroll checks you expect to receive the next calendar year (maximum of 24).
Through payroll deduction, this amount is taken from your paychecks (before taxes) and deposited to your FSA account(s). You file a claim for reimbursement of an incurred expense. ASI processes “good order” claims by the next business day and sends you a reimbursement by direct deposit or check. Dependent Care expenses incurred through March 15 may be applied toward the previous year’s annual election, if any funds remain.
| FSA Limits | 2024 | 2025 |
|---|---|---|
| Health FSA | ||
| $3,050 | $3,200 |
| $610 | $640 |
| Dependent Care FSA | ||
| $5,000 | $5,000 |
When and how do I enroll?
You can enroll within 30 days of hire, when you have a qualifying life event, or during the fall Open Enrollment period. To continue participation each plan year, you must re-enroll. All enrollments must be processed through Workday.
Can I change my election midyear?
Changes are only allowed if you have a qualifying life event. Please refer to the Summary Plan Description for more details or contact your human resources associate.
What happens if I leave employment during the year?
Generally, your coverage stops at the end of the month in which you make your last payroll deduction.