Flexible Spending Accounts

Flexible Spending Accounts, or FSAs, allow you to pay eligible expenses with pre-tax dollars:

The Health Care FSA is for eligible medical, dental and vision care expenses – like deductibles, copayments and coinsurance – for you and your dependents. You are not eligible to participate in the Health Care FSA if you enroll in the BU Health Savings Plan.

Important Changes to the Health Care FSA Employer Contribution & Eligibility in 2026:

Following a recent review, the Health Care FSA has been updated to better align with our health plan eligibility guidelines and certain requirements under the Affordable Care Act. The following changes to the Health Care FSA Plan will take effect on January 1, 2026:

  • Eligibility – Employees working at least 50% of a full-time schedule with an assignment duration of 9 or more months will continue to be eligible to contribute to the Health Care FSA. Employees that do not meet this eligibility criteria will no longer be able to participate in the Health Care FSA.
  • Employer Contributions – University contributions to your Health Care FSA will change as outlined in the chart below 
  • You are not eligible to participate in the Health Care FSA if you do not meet the above-described eligibility criteria or if you enroll in the BU Health Savings Plan.
  • Your enrollment in an FSA does not carry over each year. Therefore, if you would like to continue your participation in an FSA, and meet the above-described eligibility criteria, you must re-enroll each year during Open Enrollment.

The annual contribution limit for the Health Care FSA will increase to $3,400 effective January 1, 2026.

BU Contributions to the Health Care FSA

If you elect the PPO Plan, BU may contribute an amount to your Health Care FSA that can be used to pay for eligible out-of-pocket expenses, like your deductible. The amount BU contributes is based on your salary and family coverage level. Employer contributions to the Health Care FSA Plan will change effective January 1, 2026, as described below:

Salary Tier
2026 FSA Contribution from BU
Single
Family
< $70,000 $250 $500
$70,000 – $100,000 $125 $250
> $100,000 No contribution

The Dependent Care FSA is for dependent care expenses, such as day care or elder care costs, that enable you (and your spouse, if married) to work. 

2026 Annual Contribution Limit for the Dependent Care FSA:

The annual contribution limit for the Dependent Care FSA will increase to $7,500 per household or up to $3,750 if you and your spouse both work and file separately.

2026 Annual Contribution Limit
Dependent Care FSA $7,500 per household
Health Care FSA $3,400

Key FSA Features

The following table highlights key features of the Flexible Spending Accounts. For more information, visit the Flexible Spending Accounts section of this website.

Key Features Health Care FSA Dependent Care FSA
Maximum Contributions (determined by the IRS) You can contribute up to $3,400 in pre-tax dollars. If you enroll in the PPO Plan, BU may contribute to the Health Care FSA on your behalf: learn more  You can contribute up to $7,500 in pre-tax dollars (up to $3,750 if you and your spouse both work and file separately)
Making Changes You may make a change during the year only if you have a Life or Career Event. You may make a change during the year only if you have a Life or Career Event.
Funds Available The entire amount elected for the plan year is available, less any claims paid to date Funds are available as they are deposited to your account
Covered Expenses(visit www.irs.gov and see Publications 502 and 503) Eligible health care, dental and vision expenses incurred under the plan throughout the year. Eligible expenses for qualified dependents, including:

  • Children up to age 13 (older if disabled)
  • Your spouse
  • Your parents, if they live with you and are mentally or physically incapable of caring for themselves.
No Portability You cannot take your FSA with you if you leave BU. You cannot take your FSA with you if you leave BU.
No Rollover Any unused funds at the end of the year will be forfeited. Any unused funds at the end of the year will be forfeited.

Important FSA Rules

  • You may not enroll in the Health Savings Account for 2026 and also elect a health care flexible spending account.
  • The “use it or lose it” rule: Under IRS guidelines, you forfeit any unused FSA balance at the end of the year. Budget carefully and contribute only as much money as you are confident you will use during the year for qualified expenses.
  • You have until the March 31 following the end of a given plan year to submit claims for reimbursement of expenses incurred during that plan year. Account balances remaining after that date will, by law, be forfeited.
  • Your enrollment in an FSA does not carry over each year. Therefore, if you would like to continue your participation in an FSA and meet the above-described eligibility criteria, you must re-enroll each year during Open Enrollment.