2027 Flexible Spending Accounts

Overview

• The Health Care FSA allows you to use pre-tax dollars for eligible out-of-pocket health expenses.

• You can learn more about the account and which expenses are covered through this brochure (PDF, ) .

• Even if you were enrolled in the FSA last year, you must re-enroll each year.

• You can carry over up to $680 from 2026 to 2027. The FSA vendor, P&A Group, will manage the carryover amounts.

• The maximum contribution limit for 2027 is projected to be $3,500.

How this FSA works

• Calculate how much you spend out-of-pocket for eligible health care for the year. Benefit Strategies has forms and a calculator that can help you assess your expenses.

• Enroll in the plan through Workday.

• After you decide how much to contribute, Montgomery College withdraws that amount from your paycheck. Withdrawals are divided by the number of pay periods and spread throughout the year.

• You will receive a debit card that you can use for eligible expenses, or you can submit a claim new window. If you participated in the FSA last year, you will use the same debit card and will not be issued a new one unless it is expiring. 

Details
The maximum amount you can contribute in 2027 is $3,500.

You can enroll in the Health Care FSA even if you are not enrolled in a health insurance plan through the College. However, if you are on the Cigna HSA health plan, you are not eligible for this FSA but can use the Limited Use Plan instead. 

Because your FSA funds are pre-tax, the Internal Revenue Service (IRS) requires that the debit card be used only at the providers and retailers who provide health care services and products. Once you activate and sign your card, you can immediately use it for eligible health care expenses. If prompted to select debit or credit, always choose “credit.” There is no PIN assigned to the card. Be sure to pay for non-eligible items separately. Your card can be used at the following locations:

• Medical providers, such as doctors’ offices or hospitals;

• Dental providers, such as dentists or orthodontists;

• Vision providers, such as optometrists or ophthalmologists;

• Grocery stores, discount stores, and pharmacies that have an inventory information approval system (IIAS). An IIAS allows the retailer to validate the item being purchased as an eligible expense at the point-of-sale. Your card will be charged only for the amount eligible under your plan.

Save All Receipts
IRS rules say only eligible health-related expenses can be purchased with your card, so it is important to save all receipts and documentation. The FSA vendor will notify you if your card usage requires validation with a receipt.