Flexible Spending Accounts (FSAs)

You can set aside money from your pay, pre-tax, and use it for medical, dental, and vision expenses any time during the plan year. You can use the account for yourself, your spouse, your children under age 27 as of the end of the tax year, and your legal tax dependents. You don’t have to enroll in one of our medical plans to participate in the healthcare FSA. The catch is you need to estimate carefully. If you set aside more than you need and don’t spend it by the deadline, you may forfeit some or all your remaining account balance. 

If you or your spouse participate in an HSA-compatible plan, you are eligible for the Limited Purpose FSA which you can use for dental and vision expenses only (not medical).

A Dependent Care Flexible Spending Account can help families save potentially hundreds of dollars per year on childcare. A Dependent Care FSA allows you to set aside money, before taxes, to pay for eligible work-related day care expenses. These expenses include not only day care, but also before- and after-school care programs, preschool and summer day camp for children under age 13. The account can also be used for care for a spouse or other dependent who lives with you and is physically or mentally incapable of self-care.

You can set aside up to $5,000 per household per year ($208.33 per paycheck) and get reimbursed up to your current account balance, tax-free. Estimate carefully! Money contributed to a Dependent Care FSA must be used for expenses incurred during that plan year. Any remaining account balance will be forfeited. If you use the Dependent Care FSA, the IRS will not allow you to claim a dependent care tax credit. Consult your tax advisor if you have questions about the federal tax credit.

For the 2025 plan year, Dependent Care FSA claims must be incurred before 3/15/2026 and submitted to HealthEquity for reimbursement no later than 3/31/2026.

Rakuten complies with IRS non-discrimination tests to keep the program’s tax advantaged status. If any of the accounts fail the tests, contributions for highly compensated employees may be limited. You will be informed if this affects you. Talk to a tax advisor if you have questions about how participating in the dependent care FSA will affect claiming a Dependent Care Tax Credit on your federal tax return.

Note: There is a “use it or lose it” rule imposed by the IRS. If you do not spend all the money in your Healthcare, Limited Purpose or Dependent Care FSA by March 31 of the following year for expenses incurred from January 1 – December 31, unused dollars will be forfeited per IRS regulations for pretax contributions.