Flexible Spending Account (FSA) & Health Savings Account (HSA)
Consolidated Admin Services (CAS)
A pre-tax benefit account program administered by Consolidated Admin Services offering Medical FSAs, and Health Savings Accounts (HSAs), with IRS-set contribution limits, a CAS benefits debit card, and online/mobile account management tools.
Flexible Spending Account (FSA)
A flexible spending account (FSA) is a pre-tax benefits plan that lets employees save on a variety of healthcare expenses, depending on the type of FSA. FSAs are subject to the IRS use-or-lose rule, meaning all funds must be spent within the plan year or be forfeited to the plan.
With an FSA, you elect to have your annual contribution (up to the $3,300 limit set by the IRS) deducted from your paycheck each pay period, in equal installments throughout the year, until you reach the yearly maximum you have specified. The amount of your pay that goes into an FSA will not count as taxable income, so you will have immediate tax savings. FSA dollars can be used during the plan year to pay for qualified expenses and services.
You can rollover up to $660 from one year to the next, reducing your risk of losing dollars at the end of the plan year.
Medical FSA: Covers eligible medical, dental and vision expenses.
Combination Medical FSA: Starts as a limited FSA (covering dental and vision expenses) but can become a medical FSA.
Limited Medical FSA: Covers eligible dental and vision expenses. A limited FSA can be paired with an HSA.
- ✓Funds are contributed tax-free
- ✓Enjoy significant tax savings with pre-tax deductible contributions and tax-free reimbursements for qualified plan expenses
- ✓Quickly and easily access funds using the prepaid benefits card at point of sale, or request to have funds directly deposited to your bank account via online or mobile app
- ✓Reduce filing hassles and paperwork by using your prepaid benefits card
- ✓Enjoy secure access to accounts using a convenient Consumer Portal available 24/7/365
- ✓Manage your FSA on the go with an easy-to-use mobile app
- ✓File claims easily online and let the system determine approval based on eligibility and availability of funds
- ✓Stay up to date on balances and action required with automated email alerts and convenient portal and mobile home page messages
- ✓Get one-click answers to benefits questions
- ✓Up to $660 of unused healthcare FSA balance can be carried over into the next plan year
- ⚠All funds must be spent within the plan year or be forfeited (use-or-lose rule)
- ⚠Maximum annual contribution of $3,300 as set by the IRS
- 👤Employees with out-of-pocket expenses like co-pays, coinsurance, or deductibles for health, prescription, dental or vision plans
- 👤Employees with health conditions requiring ongoing prescription or over-the-counter medications
- 👤Employees who wear glasses or contact lenses or are planning LASIK surgery
- 👤Employees needing orthodontia care or dental expenses not covered by insurance
- 👤Employees with dependent children under age 12 in daycare, after-school care, or summer day camp
- 👤Employees providing care for a dependent who is mentally or physically incapable of self-care
Your employees' contributions reduce your payroll taxes.
You own the account.
You can choose to offer a grace period or carryover, which can make FSAs more appealing to employees, as they give employees more time to use their funds.
Health Savings Account (HSA)
A health savings account (HSA) is a pre-tax benefits plan that lets employees save money on eligible medical, dental and vision expenses, including copays, prescriptions and a variety of products. To be eligible for an HSA, an employee must be enrolled in an HSA-eligible health plan.
- ✓Funds are contributed tax-free
- ✓Funds grow (with interest or through investment) tax-free
- ✓Funds can be withdrawn tax-free when used on eligible expenses
- ✓Funds carry over from year to year — no use-or-lose rule
- ✓HSA funds can be invested; access to investment tools and more than 8,500 mutual funds and other investment options
- ✓Funds can be withdrawn at any time tax-free as long as they are used for eligible expenses
- ✓Once participants reach age 65, HSA funds can be spent on anything without paying a penalty fee
- ✓Your contributions to your employees' HSAs are tax deductible (employer perk)
- ✓Employees' contributions reduce payroll taxes (employer perk)
- ✓Save on healthcare costs since high-deductible health plan (HDHP) coverage is more affordable
- ⚠Must be enrolled in an HSA-eligible high-deductible health plan (HDHP) to be eligible
- ⚠Cannot be covered by another disqualifying health plan
- ⚠Cannot be enrolled in Medicare
- ⚠Cannot be claimed as a dependent on someone else's tax return
- ⚠Before age 65, ineligible expenses are subject to income tax and a 20% penalty
- ⚠Annual contribution limits are set by the IRS
- 👤Employees enrolled in an HSA-eligible HDHP who want to save pre-tax dollars for medical expenses
- 👤Employees looking for a long-term savings and investment vehicle for healthcare and retirement
- 👤Employees who want funds that roll over year after year without forfeiture
To be eligible for an HSA, you must be:
- Covered by an HSA-eligible high-deductible health plan (HDHP)
- Not covered by another disqualifying health plan (e.g., a spouse's plan or medical FSA)
- Not enrolled in Medicare
- Not claimed as a dependent on someone else's tax return
HSA funds can cover hundreds of eligible expenses, including bandages, first-aid kits, and copays for medical, dental, or vision care.
Before age 65: Ineligible expenses are subject to income tax and a 20% penalty.
After age 65: Only income tax applies; no penalty.
Annual HSA contribution limits are set by the IRS. Check the IRS website to find the latest limits.
If an individual is participating in an HSA through their employer, the employer generally determines what a participant's balance must be before they can invest their funds. That balance amount is referred to as the investment threshold.
If an individual participates in an individual HSA, then the investment threshold is set by the HSA administrator. They can refer to their account rules to learn their HSA's investment threshold.
Yes! HSA funds roll over year after year, making them a smart choice for both short-term medical expenses and long-term retirement planning.
Yes, they can adjust their HSA contribution anytime during the plan year.
Health Savings Account — IRS Limits
| Benefit | 2025 | 2026 |
|---|---|---|
| Maximum Contribution Levels | ||
| Individual Coverage | $4,300 | $4,400 |
| Family Coverage | $8,550 | $8,750 |
| Catch-Up Contribution (Age 55+) | $1,000 | $1,000 |
| Minimum Deductible for Qualifying HDHP | ||
| Individual Coverage | $1,650 | $1,700 |
| Family Coverage | $3,300 | $3,400 |
| Maximum HDHP Out-of-Pocket Expenses | ||
| Individual Coverage | $8,300 | $8,500 |
| Family Coverage | $16,600 | $17,000 |
Commuter / Transit Benefit Limits
| Benefit | 2025 | 2026 |
|---|---|---|
| Monthly Limits | ||
| Parking — Monthly Limit | $325 | $340 |
| Transit and Vanpooling — Monthly Limit | ||
CAS documents allow for automatic IRS FSA limit increases, therefore there is no need for a document amendment. Please email the CAS team if you would like updated enrollment materials with the new IRS limit. If your plan has already re-enrolled or is re-enrolling now, you can allow your employees to update their election to the new IRS limit due to this announcement.
You can see all the details on the tax rates and 2026 limits by referencing Internal Rev. Proc. 2025-32 and Internal Rev. Proc. 2025-19.
- Employees with regular out-of-pocket medical, dental, or vision expenses
- Employees with ongoing prescription medication needs
- Employees with dependent children under age 12 in daycare or after-school programs
- Employees providing care for disabled dependents
- Employees seeking to reduce taxable income
- 👨👩👧👦Dependents covered up to age 26
- ✅Guarantee Issue — no medical exam required
- 📋For HSA: Must be covered by an HSA-eligible high-deductible health plan (HDHP)
- 📋For HSA: Must not be covered by another disqualifying health plan
- 📋For HSA: Must not be enrolled in Medicare
- 📋For HSA: Must not be claimed as a dependent on someone else's tax return
- ✓Call CAS Customer Service: 877-941-5956
- ✓Email: info@consolidatedadmin.com
- ✓Website: www.consolidatedadmin.com
- ✓Fax: 877-641-5956
- 👤Contact CAS for assistance with HSA rules, FSA enrollment, or updated IRS limit enrollment materials