What are Flexible Spending Accounts?

​​​A flexible spending account, or “FSA” is an employer-provided benefit that allows you to contribute a set amount from your paycheck to cover out-of-pocket medical, dental, and vision expenses such as health insurance co-pays, deductibles, coinsurance, and qualifying child/elder care costs.

The funds are collected through regular, equal payroll deductions. Money deposited in a flex account is exempt from federal, state, and payroll taxes. Because taxes are not calculated on your contribution, your paycheck is not reduced by the full amount you set aside. The tax benefits can reduce your medical and daycare costs by as much as 30% depending on your tax bracket. For example, a $100 per pay period deduction might only reduce your net pay by $75 because a smaller amount of taxes was withheld. Questions?

Need more information? Email: benefits@laika.com

​​How much can I contribute?

Option

​​2026 Annual Limit

Healthcare Flex Spending

​​$3400

Healthcare Flex Spending Rollover to 2026

​​$680

Dependent Care Flex Spending*

​​$7500

Dependent Care LAIKA Match

$2000

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​For the Healthcare Flexible Spending Account (HCSA), if your spouse has a plan through their employer this has NO effect on how much you can contribute.

*For the Dependent Care Flexible Spending Account (DCSA) you can contribute up to $5,000 per household annually. If your spouse or partner has a DCSA plan through their employer, you can only contribute a combined amount of $5,000 annually.

2025 Limits​

Option

2025 Annual Limit

Healthcare Flex Spending

$3300

Healthcare Flex Spending Rollover to 2026

$660

Dependent Care Flex Spending*

$5000

Dependent Care LAIKA Match

$2000

DCSA Plan Match

LAIKA offers a dollar-for-dollar match to participants in the DCSA up to $2,000 per year for households with adjusted gross income up to $120,000 The purpose of this employer match is to assist our LAIKA families with the cost of qualified childcare expenses.

Click here to download a copy of the DCSA Match Application.

​What does “use it or lose it” mean?

Flex spending contributions are elected on a calendar year basis. LAIKA allows a $660 annual rollover benefit for our Healthcare Flexible Spending Account. Any HCSA funds $660 or less remaining in your account at the end of the year will automatically roll over into the following plan year. Your rollover balance will be available for services incurred in the new plan year. Unused HCSA funds above $660 are forfeited.

For the Dependent Care Flexible Spending Plan there is a 3-month grace period in which you can continue to use your previous plan year funds in the subsequent plan year.

Unless you have a qualified status change, IRS flex spending account rules maintain that you cannot make mid-year changes to your contribution election.

When an employee terminates (voluntarily or involuntarily) mid-year, only claims up to the last day of the month in which employment ended are eligible for reimbursement. Employees can elect to continue their Healthcare FSA plans via COBRA.

Who is our Plan Administrator?

Health Equity administers the Flexible Spending benefit for LAIKA. Claim information and submission details are coming soon.

Healthcare Flexible Spending Accounts (HCSA)

What types of things can be reimbursed through the HCSA?

In general, any out-of-pocket expense for medical, dental, vision and prescription that is not covered by the insurance plan could be covered by HCSA funds. A few of the most common examples include doctor office and prescription co-pays, eyeglasses, contact lenses and contact lens cleaning supplies, and extra teeth cleaning not covered by the insurance plan. For an IRS list, go to https://www.irs.gov/forms-pubs/about-publication-969. In 2020, the IRS updated its list to include over the counter medicines as well as feminine hygiene items https://fsastore.com/

A healthcare FSA cannot pay for health insurance premiums, cosmetic items, cosmetic surgery, controlled substances (in violation of federal law), or items that improve "general health."

Do I have to wait until I have enough money in my HCSA account to submit a claim?

One of the best parts of the HCSA is that you have full access to your annual election to pay for out-of-pocket medical expenses from day one of the plan year.

How do I pay for my out-of-pocket expenses?
You can:

  • Use your Health Equity FSA debit card. Please keep your itemized receipts as Health Equity may ask you to provide them as proof for anything that they cannot substantiate automatically.

  • Use your Health Equity FSA debit card. Please keep your itemized receipts as Health Equity may ask you to provide them as proof for anything that they cannot substantiate automatically.

  • To file a flexible spending claim, please log in to HealthEquity Login and follow the prompts. First time log in guide.

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What is proof of payment?
The best ‘receipt’ you can provide when filing a HCSA claim is the Explanation of Benefits statement you receive from your insurance provider. However, you can provide the receipt you receive from the doctor or pharmacy if diagnostic codes are provided on the receipt. This will provide proof that the claim was an eligible expense. Are over the counter (OTC) medications eligible for reimbursement through the HCSA? Here is the IRS’s updated list of DCSA eligible over the counter medicines as well as feminine hygiene items.

​Dependent Care Spending Accounts (DCSA)

​How am I reimbursed for daycare expenses?

  • To be reimbursed for day care expenses you will need to file a claim through Health Equity’s website. You can also download their mobile app through Google Play or Apple Store.

  • If the recipient of your child/elder care is not insured under the LAIKA plan, you may be asked to enter dependent information. In those cases, please reach out to benefits@laika.com and we will ask a Health Equity administrator to process account adjustments. A check will be mailed to you.

What if my daycare expenses are more than my contribution?
Unlike the HCSA, the DCSA only allows for reimbursement up to the amount you have in your DCSA account.

What expenses can be reimbursed through the DCSA?

  • You can only be reimbursed for daycare expenses that allow you and your spouse/partner to work or go to school. Date night childcare expenses are not reimbursable.

  • Be careful when requesting reimbursement for expenses for a child to go to pre-school or kindergarten. The primary intent for the program must be to provide daycare—not education. A private Montessori program for a preschool-age child would be covered, but the same program for a kindergarten-age child would not.

  • Summer day camps may be eligible for reimbursement if both parents work full-time during the summer. Overnight camps are not eligible. For further questions, email us at benefits@laika.com.

Quick Links

​DCSA Match Application
Health Equity Member Registration Flyer
RGA Certification of Medical Necessity (Form coming soon)
IRS Reimbursable Expense
Dependent Care Reimbursement Form
FSA Reimbursement Form