Flexible Spending Accounts (FSAs)

Women putting on glasses

Helping employees maximize their healthcare dollars

An FSA is a great tool to help employees set aside money, pre-tax, for healthcare and dependent expenses, while also allowing the employer to avoid payroll taxes (7.65% for Medicare and Social Security) on employee and employer contributions. Medical and Limited Purpose FSA dollars are available to employees immediately which helps with unexpected medical expenses. The money in any FSA type must be used by the end of the plan year – however, some employers offer either a limited rollover amount (up to $570 for 2022) or a grace period ( 2-1/2 months) that allows employees to have extra time to spend unused FSA dollars.

Types of FSAs and Eligible Expenses

Medical FSA

Limited Purpose FSA

Dependent Care FSA

What does it cover?

Who is Eligible?

What are the requirements?

Medical FSA

Covers many medical items including:

  • Copays and coinsurance
  • Doctor visits
  • Over-the-counter medicine
  • Prescription drugs
  • Dental and orthodontia
  • Eye exams, frames, contacts
  • And much more

Employee and employee’s IRS eligible dependents.

Account is only offered through employers.

Contributions to a Health Savings Account (HSA) are not allowed if an employee has a medical FSA.

Limited Purpose FSA

Covers many dental, vision and preventative items including:

  • Dental and orthodontia
  • Dental implants, veneers, dentures, bridges
  • Eye exams, frames, contacts, solutions and drops

Employee and employee’s eligible dependents.

Account is only offered through employers.

HSA owners can have a Limited Purpose FSA.

Dependent Care FSA


  • Child care center, babysitter, nanny
  • Summer day camp
  • Before-or after-school care
  • Disabled dependent and/or spouse care
  • Elder Care

Employee’s IRS eligible dependents age 12 and under and Disabled IRS eligible dependents of any age who are unable to care for themselves.

To be eligible for a dependent care FSA, both the employee and their spouse (if applicable) must work, be looking for work or be full-time students.

Paying for Expenses

Employees may use the payment debit card to pay for FSA eligible expenses or pay out of pocket and request a distribution from the online account or mobile app. It is easy to sign up for text alerts to stay up to date on account activity.

More Benefit Spending Account Options

Benefit spending accounts are NOT deposits or obligations of UMB Bank, N.A. and are NOT insured by the FDIC.

All mention of taxes is made in reference to federal tax law. Neither UMB Bank n.a., nor its parent, subsidiaries, or affiliates are engaged in rendering tax or legal advice and this document is not intended as tax or legal advice.