FSA Contribution Calculator
Updated September 2026 · Free · No sign-up
Decide your FSA election for open enrollment — estimate eligible expenses, see the tax savings per contribution level, and avoid the use-it-or-lose-it trap that eats over-elections.
Quick answer: The 2026 health FSA limit is $3,400 (IRS Notice 2025-67). Every dollar you elect skips federal income tax AND FICA — a $2,000 election saves roughly $500-700 for most earners. Elect what you will genuinely spend: unused funds above your plan's carryover are forfeited.
How an FSA Saves Money
A health FSA takes pre-tax money from each paycheck for medical expenses. The triple exclusion — federal income tax + Social Security + Medicare (and usually state tax) — means a 22%-bracket earner saves ~34.65% on every elected dollar actually spent. Unlike a 401(k), the saving is immediate and permanent, not deferred.
Worked Examples
Example 1 — typical family. $2,000 election, 22% bracket + 7.65% FICA + 5% state = 34.65% → $693 saved, $76.92 per biweekly check pre-tax.
Example 2 — the over-election trap. Elect $3,400, spend $2,600, plan has a $660 carryover: forfeit $140. The tax saving on the forfeited slice is gone too — over-electing by more than your carryover always loses.
Example 3 — the front-load feature. Your full election is available January 1 even though you fund it all year — LASIK in February on a fresh election is an interest-free loan from your employer.
Sizing Your Election (The 15-Minute Method)
| Category | Estimate from |
|---|---|
| Recurring prescriptions & copays | Last year's pharmacy + visit history × 12 |
| Dental (cleanings, known work) | Planned treatment quotes |
| Vision (exam, glasses, contacts) | Your renewal cycle |
| Planned procedures / therapy | Known copay schedules |
| OTC eligible items (sunscreen, first aid, menstrual products) | ~$100-300/yr for most households |
Sum, then elect the total minus a 10-15% haircut (or down to your plan's carryover cushion). Under-electing costs you a small missed saving; over-electing costs whole dollars.
Use-It-or-Lose-It: Know Your Plan's Escape Hatch
Plans may offer ONE of: a carryover (2026 max $680 into 2027) or a grace period (2.5 extra months to spend) — or neither. December surprise balance? Eligible spend-down list: glasses, contacts stockpile, dental work, prescription refills, FSA-store items. The year-end deadline logic is the same trap as expiring PTO — a calendar reminder in early November is worth real money.
FSA vs HSA (Open Enrollment's Big Fork)
| FSA | HSA | |
|---|---|---|
| Requires | Any health plan (employer offers FSA) | HDHP enrollment |
| 2026 limit | $3,400 | $4,400 self / $8,750 family |
| Rollover | ≤ $680 (plan-dependent) | Unlimited — it's your account forever |
| Invests/grows | No | Yes — triple tax advantage |
| Job change | Forfeit (COBRA rarely worth it) | Goes with you |
On an HDHP, the HSA calculator is the right tool (you can pair it only with a limited-purpose FSA). Both elections come out of the same open-enrollment window as your 401(k) year-end planning — do the three together.
Special FSA Types
- Dependent care FSA: separate $7,500 limit (2026, married filing jointly) for childcare/eldercare — different account, different rules, almost always worth maxing if you pay for care.
- Limited-purpose FSA: dental + vision only, pairs legally with an HSA.
- Mid-year changes: elections lock for the year absent a qualifying life event (birth, marriage, job change).
Frequently Asked Questions
What is the FSA contribution limit for 2026?
$3,400 for health FSAs (IRS Notice 2025-67), up from $3,300 in 2025. The carryover maximum into 2027 is $680 where plans offer it. The 2027 limit is announced in late 2026.
How much does an FSA actually save?
Your marginal federal rate + 7.65% FICA + state rate on every dollar spent — commonly 30-40%. A $2,000 election saves ~$693 at the 22% bracket with 5% state tax.
What happens to unused FSA money?
Forfeited, except your plan's carryover (up to $680) or 2.5-month grace period — plans offer one, the other, or neither. Check yours before electing.
Can I have an FSA and an HSA?
Only a limited-purpose FSA (dental/vision) alongside an HSA. A general health FSA disqualifies HSA contributions.
How much should I put in my FSA?
Total your predictable expenses (prescriptions, dental, vision, planned procedures), then subtract a 10-15% buffer or rely on the carryover as your cushion.
Is my full FSA election available in January?
Yes — health FSA funds front-load: the entire election is spendable on day one while deductions spread across the year.
✓ Formula verified • Last updated: September 27, 2026