Saving money with tax-advantaged accounts (like HSAs and FSAs)

Written by the Progyny Editorial Team — September 2025.

Tax-advantaged accounts give you and your family a way to set aside money for healthcare and dependent care expenses.

They come with other benefits, too. For example, your contributions are tax-deductible. And with some plans, your employer may help contribute.

Common account types

• Health Savings Account (HSA). An HSA is like a personal bank account for medical expenses. The money you contribute is pre-tax, so you’ll get tax savings. The funds roll over every year — it’s your money to save, invest, and use until you retire. Learn more about HSAs.
• Flexible Spending Account (FSA). An FSA is an employer-owned account for medical expenses. The money you contribute is pre-tax, so you’ll get tax savings. But the money may expire at the end of the year. Learn more about FSAs.
• Dependent Care Flexible Spending Account (DCFSA). A DCFSA is an account for dependent services like preschool, summer day camp, before and after school programs, and child or adult daycare. The money you contribute is pre-tax, so you’ll get tax savings. But the money expires at the end of the year. Learn more about DCFSAs.

Keep in mind, these accounts can only be used for certain approved expenses. When spending the money from one of these accounts, it’s a good idea to save your receipts.

HSAs

Who can enroll?

You can enroll in an HSA if you have a qualified high-deductible health plan. You (and sometimes your employer) can contribute funds pre-tax.

How much can I contribute?

The contribution limits change over time. If you go over the limit, you may have to pay tax penalties. Be sure to research this every year!

• In 2025, you can contribute up to $4,300 if you have individual coverage. Or up to $8,550 if you have family coverage.
• In 2026, you can contribute up to $4,400 if you have individual coverage. Or up to $8,750 if you have family coverage.
• If you are 55 or older, you can contribute an additional $1,000.

What can I do with the funds?

You can use your HSA funds on qualified medical expenses, such as deductibles and co-pays (but not premiums). Your account rolls over every year, and you can keep the account if you switch jobs or health plans. You can only contribute if you have a high-deductible health plan.

If you cash out (without using the money for qualified medical expenses), you will have to pay taxes and possibly a tax penalty.

FSAs

Who can enroll?

You can enroll in an FSA if it’s offered by your employer. You do not need to enroll in a certain health plan to have an FSA. You can contribute funds pre-tax.

How much can I contribute?

The contribution limits change over time. Be sure to research this every year.

• In 2025, you can contribute up to $3,300.

What can I do with the funds?

You can use your FSA funds on qualified medical expenses, such as deductibles and co-pays (but not premiums). Typically, unused funds do not roll over to the next year, and you cannot cash out the account.

DCFSAs

Who can enroll?

You can enroll in a DCFSA if it’s offered by your employer. You do not need to enroll in a certain health plan to have a DCFSA. You can contribute funds pre-tax.

A DCFSA account can be used for children under 13 years old or adults you live with who are not able to care for themselves.

How much can I contribute?

The contribution limits change over time, and your employer may have lower limits. Be sure to research this every year.

• In 2025, if you make less than $155,000, you can contribute up to $2,500 if you’re married and file a separate tax return. Or up to $5,000 if you’re married and file a joint tax return, or if you file as single or head of household.
• If you make $155,000 or more, you can contribute up to $3,600.

What can I do with the funds?

You can use your DCFSA funds on qualified dependent care expenses, such as preschool, summer day camp, before and after school programs, and child or adult daycare. Unused funds do not roll over to the next year, and you cannot cash out the account.

How do I learn more?

Talk with your employer or health plan representative to understand which plans are available and right for you. Your Progyny Benefits Specialist is also here to help support you. It’s always OK to ask any questions you have.

Disclaimer: The information provided by Progyny is for educational purposes only and is not financial advice. Always consult a qualified professional for financial guidance.