2025 Flexible Spending Accounts

For employees enrolling in the Lion Advantage Flex or the Lion Traditional medical plan, or those who may be enrolled in a plan outside of Penn State, you may choose to participate in the Health Care Flexible Spending Account (FSA), managed through HealthEquity. Like the Health Savings Account (HSA), contributions made to the Health Care FSA are tax-free. However, unlike the HSA, funds contributed must be used in the same plan year for eligible health care expenses.

Funds contributed must be used in the same plan year for Eligible Health Care Expenses. Also helpful, is an additional list from HealthEquity regarding Non-Qualifying Medical Expense List. See Health Care FSA flyer for more information.

Please also keep in mind that if two Penn State employees are married and have elected family coverage under the Lion Advantage HSA plan, a Health Care FSA cannot be opened under either employee. In addition, if you are the Penn State employee and your spouse is employed elsewhere and enrolled in a high-deductible health plan with an HSA, a Health Care FSA cannot be opened by either employee. The IRS does not permit use of a Health Care FSA when contributing to an HSA.

For 2025, the contribution maximum is $3,300 annually (minimum $120 annually).

This election must be made during benefits open enrollment and cannot be changed, unless of a life-qualifying event.

2025 IRS Allowable Rollover - For 2025, an employee may carry-over $640 of 2024 funds into 2025 if enrolled for 2025. The employee must elect the FSA for 2025 in order to received the 2024 carry-over. 

Dependent Care FSA plans are available to all employees regardless of health plan enrollment. This account can be used for dependent child expenses up to the age of 13. Once your child reaches age 13, they are no longer eligible. This account is used to reimburse you for dependent care expenses, such as child day care, elder care, etc.

The contribution maximums for 2025 are:

• $5,000 per year per household annually (minimum $120 annually)
• $2,500 for married individuals filing a separate tax return

This election must be made during benefits open enrollment and cannot be changed, unless of a life-qualifying event.