FSA Advantages and Limitations


  • Contributing to an FSA lowers your current taxable income
  • Use before-tax money to pay for eligible expenses
  • All the funds you elect to contribute are available for use immediately (if you are a new hire) or on January 1 (if you elect an FSA during Annual Enrollment)
  • Dependent Day FSA is open to any benefits-eligible employee, even if you waive coverage through the Firm


  • Only eligible to participate in the Health Care FSA if you choose Options A or B
  • Only eligible to participate in the Limited Purpose FSA if you choose Option C
  • Use-it-or-lose-it feature puts you at risk of losing unused funds
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