Steps to Obtain a Flexible Spending Account Card

Quick answer

• You typically get an FSA card automatically once your employer enrolls you in their FSA plan.
• If you don’t receive one, contact your HR department or the FSA administrator.
• Ensure your employer offers an FSA for healthcare or dependent care expenses.
• Understand eligible expenses for your specific FSA type.
• Keep receipts to verify purchases, even with a card.
• The card is linked to your FSA balance, so spending is limited by your elected amount.

Who this is for

• Employees whose employers offer a Flexible Spending Account (FSA) benefit.
• Individuals who want to use pre-tax dollars for eligible healthcare or dependent care expenses.
• People who want a convenient way to pay for these out-of-pocket costs.

What to check first (before you act)

Your Employer’s Benefits

Confirm if your employer offers a Flexible Spending Account (FSA) program. Not all employers do, and some may offer different types (e.g., health FSA, dependent care FSA). This is usually detailed in your new hire paperwork or during open enrollment periods.

Your FSA Enrollment Status

If your employer offers an FSA, verify that you have actively enrolled in the plan. Enrollment typically happens during specific periods, like when you first start a job or during your company’s annual open enrollment. Without enrollment, you won’t have an FSA and therefore no associated card.

Your FSA Administrator

Identify who manages your employer’s FSA. This is often a third-party benefits administrator, not your employer directly. Knowing this entity is crucial if you need to contact someone about your card or account. Your HR department can usually provide this information.

Your FSA Type and Rules

Understand which type of FSA you have (e.g., health care FSA, dependent care FSA) and the specific rules governing it. Each type has different eligible expenses. Also, be aware of any “use-it-or-lose-it” provisions, which dictate that funds not spent by the end of the plan year (or grace period/carryover, if applicable) may be forfeited.

Step-by-step (simple workflow)

1. Confirm Eligibility and Enrollment

• What to do: Verify that your employer offers an FSA and that you have successfully enrolled in the plan during the designated enrollment period.
• What “good” looks like: You have received confirmation of your FSA enrollment from your employer or the FSA administrator.
• A common mistake and how to avoid it: Assuming enrollment is automatic. Many FSAs require active participation. Always confirm your enrollment status with HR.

2. Await Card Issuance

• What to do: Once enrolled, your FSA administrator will typically mail your FSA card to your home address.
• What “good” looks like: You receive a debit card in the mail specifically branded for your FSA.
• A common mistake and how to avoid it: Not checking your mail for the card. It might arrive separately from other benefits information. Be patient, as it can take a few weeks after enrollment.

3. Activate Your FSA Card

• What to do: Follow the instructions provided with the card to activate it. This usually involves calling a phone number or visiting a website.
• What “good” looks like: Your card is active and ready for use.
• A common mistake and how to avoid it: Forgetting to activate the card. An unactivated card cannot be used for purchases.

4. Understand Eligible Expenses

• What to do: Familiarize yourself with the IRS guidelines and your specific plan’s rules for eligible expenses for your FSA type.
• What “good” looks like: You have a clear understanding of what you can and cannot purchase using your FSA card.
• A common mistake and how to avoid it: Assuming all medical expenses are covered. Some services or items might be excluded. Always check the list of eligible expenses.

5. Use Your FSA Card for Purchases

• What to do: Present your FSA card at the point of sale for eligible expenses, similar to a regular debit or credit card.
• What “good” looks like: Your transaction is approved and deducted from your FSA balance.
• A common mistake and how to avoid it: Using the card for ineligible items. This can lead to the funds being taxed or you being required to repay the amount.

6. Keep All Receipts

• What to do: Save all itemized receipts and Explanation of Benefits (EOBs) for every purchase made with your FSA card.
• What “good” looks like: You have a complete and organized record of all your FSA transactions.
• A common mistake and how to avoid it: Discarding receipts. Your FSA administrator may request these to verify the eligibility of your purchases.

7. Submit Documentation if Required

• What to do: If your FSA administrator requires substantiation for a purchase, submit the requested receipts or EOBs promptly.
• What “good” looks like: You have successfully provided the necessary documentation, and your claim is approved.
• A common mistake and how to avoid it: Missing the deadline for submitting documentation. This could result in the expense being deemed ineligible and potentially requiring repayment.

8. Monitor Your Balance

• What to do: Regularly check your FSA balance through your administrator’s online portal or by contacting them.
• What “good” looks like: You know how much money is remaining in your FSA and can plan your spending accordingly.
• A common mistake and how to avoid it: Forgetting about your balance as the plan year ends. This can lead to losing remaining funds.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not enrolling during the open enrollment period	Inability to use pre-tax funds for eligible expenses that year	Enroll during the next open enrollment period or if you experience a qualifying life event.
Using the card for ineligible expenses	The expense may be deemed taxable, or you may have to repay the amount to the FSA.	Carefully review the list of eligible expenses before making a purchase.
Not keeping receipts for purchases	Your FSA administrator may request proof of purchase, and without it, the expense can be denied.	Save all itemized receipts and EOBs for every transaction.
Forgetting about “use-it-or-lose-it” rules	Forfeiting any remaining funds in your FSA at the end of the plan year.	Plan your spending throughout the year and try to utilize all available funds on eligible items.
Using the card for expenses incurred before enrollment or after the plan year ends	The expense will be denied as it falls outside the coverage period.	Only use the card for expenses incurred within your FSA’s active plan year.
Not activating the card upon receipt	You will be unable to make any purchases with the card.	Follow the activation instructions immediately upon receiving the card.
Spending more than your elected FSA amount	Transactions may be declined, or you may be billed for the overage.	Monitor your FSA balance to ensure you do not exceed your elected contribution.
Not understanding the difference between health and dependent care FSAs	Using funds from one type of FSA for expenses eligible under the other.	Clarify which type of FSA you have and its specific eligible expenses.
Missing deadlines for submitting documentation	Expenses may be deemed ineligible, requiring you to pay out-of-pocket or repay the FSA.	Respond promptly to any requests for substantiation from your FSA administrator.

Decision rules (simple if/then)

• If your employer offers an FSA, then enroll during open enrollment because it allows you to save on taxes for eligible expenses.
• If you receive an FSA card, then activate it immediately because it’s required for making purchases.
• If you are unsure about an expense’s eligibility, then check your FSA plan documents or contact the administrator because using the card for ineligible items can cause tax issues.
• If you make a purchase with your FSA card, then keep the receipt because your administrator may require proof of purchase.
• If your plan has a “use-it-or-lose-it” rule, then plan your spending throughout the year because unspent funds may be forfeited.
• If you have a health FSA, then use it for qualified medical, dental, and vision expenses because that is its primary purpose.
• If you have a dependent care FSA, then use it for eligible childcare or eldercare expenses because these are the specific qualifying costs.
• If your FSA card is declined, then check your balance and verify the expense’s eligibility because the issue could be insufficient funds or an ineligible item.
• If you have a qualifying life event (e.g., marriage, birth of a child), then check if you can adjust your FSA contribution because this may allow for changes outside of open enrollment.
• If you are nearing the end of your plan year, then assess your remaining balance and plan purchases because you want to avoid losing any available funds.
• If you receive a request for documentation, then submit it promptly because delays can lead to expenses being denied.

FAQ

How do I get an FSA card if my employer offers an FSA?

Your employer’s FSA administrator will typically mail you a debit card after you enroll in the plan. You don’t usually need to request it separately.

What if I don’t receive my FSA card?

Contact your employer’s HR department or the benefits administrator listed on your enrollment materials. They can track its status or issue a replacement.

Can I use my FSA card for any medical expense?

No, only for expenses deemed eligible by the IRS and your specific FSA plan. Always check the list of eligible items and services.

What happens if I use my FSA card for an ineligible expense?

The expense will likely be denied, or you may be required to repay the amount to your FSA. It could also be treated as taxable income.

Do I need to keep receipts if I use my FSA card?

Yes, absolutely. Your FSA administrator may request itemized receipts or Explanation of Benefits (EOBs) to verify that the purchase was for an eligible expense.

Is my FSA card a credit card?

No, it’s usually a debit card linked directly to the funds you’ve elected to contribute to your FSA. Spending is limited by your elected amount.

What if I lose my FSA card?

Contact your FSA administrator immediately to report the card lost or stolen and request a replacement.

Can I use my FSA card for expenses incurred before I enrolled?

No. FSA funds can only be used for eligible expenses incurred during the plan year for which you are enrolled.

What this page does NOT cover (and where to go next)

• Specific IRS contribution limits for FSAs (check IRS publications).
• Detailed tax implications of FSA usage (consult a tax professional).
• Specific eligible and ineligible expenses for all FSA types (refer to your plan documents and IRS Publication 502).
• How to appeal a denied FSA claim (contact your FSA administrator for their appeals process).
• The differences between FSAs and Health Savings Accounts (HSAs) (research HSA benefits and eligibility).