Flexible Spending Accounts (FSAs) allow you to set aside pre-tax money from your paychecks to pay for qualifying medical expenses (MERP), child/elder care costs (DCAP), or transit/parking expenses (TRP). This lowers your taxable income.
Medical Expense Reimbursement Program (MERP) acts as a medical savings account - giving you your full annual goal amount at the beginning of the year for you to use with a Mastercard or applying for reimbursement to your bank account.
Dependent Care Assistance Plan (DCAP) is used to pay for expenses like preschool, daycare, before/after school programs, and elder day care.
Transportation Reimbursement Plans (TRP) are used to pay for qualifying parking and transit expenses.
How to Enroll
You must enroll every year to participate in a Flexible Spending Account. You have from Wednesday, October 22nd to Wednesday, November 12th to enroll for 2026.
Go to your Workday Open Enrollment page to select which plan you want and what you want your annual (or per-paycheck) goal to be.
FSA Details for 2026
- Medical (MERP) Maximum: Increases to $3,300 annually.
- 2026 to 2027 Carryover: $660 (this number may change if the federal government announces changes to the limit).
- Dependent Care (DCAP) Maximum: Increases to $7,500 annually ($7,500 per family, $3,750 if married filing separately)
- Note: Two-earner households may need to coordinate to avoid exceeding the limit. In shared custody, only the parent claiming the child as a tax dependent can use DCAP for expenses while the child is in their care.
- Transportation (TRP): Monthly maximum contribution increases to $225/month for transit and $325/month for parking. Minimum contribution: $20 per month.
- Stay tuned for updates on a new FSA vendor for 2026!