FSA Basics

girl with braces, pill bottle with pills, reading glasses and a toddler

Flexible Spending Accounts (FSA) are State of Iowa benefits that allow eligible employees to set aside money from their paycheck (no tax withholding) to pay for medical or dependent care expenses with pretax dollars.

Take advantage of this great tax savings benefit!

There are two types of Flexible Spending accounts offered.

  1. A Health Flexible Spending Account (HFSA) is for healthcare costs such as co-pays, prescriptions, and dental and vision services for you, your spouse, and your dependent.
  2. A Dependent Care Flexible Spending Account (DCFSA) is for care expenses of a child under 13 and/or an adult incapable of self-care, that enables you to work.

The advantage is that you're saving pre-tax dollars, so you end up paying fewer taxes on your salary and have more to spend. Most employees save at least 25% on each dollar set aside in their FSA.

Additionally, you can access your entire year's worth of health care contributions at the start of the plan year.

How FSA Works

  1. You decide how much to set aside for health and/or dependent care expenses ("annual election" may not exceed  maximum limits). This amount is divided by the number of payroll checks you expect to receive the next calendar year (maximum of 24).
  2. Through payroll deduction, this amount is taken from your paychecks and deposited to your FSA account(s).
  3. You incur an expense and choose a claim option to receive reimbursement. ASI processes your β€œin good order” claim by the next business day and sends you a reimbursement by  direct deposit or check.

FSA Limits

2026 Health FSA

  • Annual Limit $3,300
  • Carryover Limit $660

2026 Dependent Care FSA

  • Annual Limit $7,5000

Per family for single and married employees ($3,750 if married and filing separate tax returns) for dependent care.

FSA Resources

Common Questions

When and how do I enroll?

  • You may 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.