Flexible Spending Account (FSA)

Microsoft offers two types of healthcare FSAs:

• The General Purpose FSA allows you to receive reimbursement for qualified medical, dental, prescription and vision expenses, and is only available to employees who aren’t eligible for a Health Savings Account.
• The Limited Purpose FSA allows you to receive reimbursement for qualified dental and vision expenses only and is available to employees who are enrolled in the Health Savings Plan and have indicated they are eligible to contribute to an HSA or for employees whose spouse/domestic partner is enrolled in an HSA.

See the Dependent Care FSA page for details on that type of account.

Check out Qualified FSA Expenses  and IRS publication 502  for details on eligible expenses.

For 2026, the maximum contribution limit for a Microsoft healthcare FSA is $3,300. This maximum is per employee, not per household. For example, you and your spouse/domestic partner could each contribute $3,300, even if you both work at Microsoft.

Important note! Estimate your expenses carefully. The FSAs can only reimburse services you use or items you purchase by December 31 of each year. All claims must be received within 90 days of the end of the plan year.

The IRS allows you to carry over up to $660 in unused General Purpose or Limited Purpose healthcare FSA funds to the following calendar year. Any funds over $660 remaining in your FSA following 90 days after the end of the plan year will be forfeited, as required by IRS rules.

Note: Dependent Care FSAs do not allow for any carryover to the next year.

When you enroll in the FSA, you decide how much to contribute for the year, up to the maximum amount. The amount you elect will be deducted on a prorated basis for each pay period throughout the year to fund your account. You must re-enroll during the open enrollment period each year if you want to continue participating in the next plan year unless you have a carryover from the prior plan year.

You can enroll in the plan during your New Hire enrollment period, during the Open Enrollment period, or upon experiencing a Qualified Status Change. To enroll in the Flexible Spending Account(s), go to aka.ms/benefitsenroll. The open enrollment period takes place in the fall each year, typically in the first few weeks of November, prior to Thanksgiving week. The specific dates will be communicated each year.

Changes to add one or more dependents to General Purpose or Limited Purpose Healthcare FSA coverage will take effect as of the date of the special enrollment event (marriage, birth, legal adoption, etc.), such that eligible expenses incurred by the newly-added dependent(s) after that date may be reimbursed from the FSA. However, any change in the amount of your FSA election, and resulting payroll contributions, will take effect prospectively only for pay periods following the date you make the election change.

To be eligible for reimbursement, expenses must meet IRS criteria and be incurred during the period of coverage. Services prior to your date of hire are not eligible for reimbursement.

You pay for expenses and then seek reimbursement from your FSA. You may receive your reimbursement via direct deposit or check. Go to NetBenefits or download the Fidelity Health® app from the Apple App Store or the Google Play Store to keep track of your eligible expenses, view your account balance, pay providers, and reimburse yourself for eligible expenses.

Fidelity Debit card

Once you’re enrolled, you’ll receive a Fidelity debit card which you can use to pay for qualified medical expenses at eligible merchants and service providers that accept Visa debit cards.

If you’re enrolled in both a Microsoft FSA and HSA, purchases will be deducted first from your available FSA balance, then from your available HSA balance based on the merchant and expense type. You won’t need to worry about the right account to use – the card will do it for you.

Important Note! Make sure to keep all receipts and documentation for eligible expenses.

For more detailed information regarding plan details, check out the Summary Plan Description.

If you need assistance or have any questions, visit NetBenefits or contact Fidelity at 1-888-810-6738.