Flexible Spending Account (FSA)
A Flexible Spending Account (FSA) is a smart way to set money aside for eligible expenses before taxes are deducted from your paycheck. This means you pay less in annual taxes. The Company offers 3 types of FSAs. You must re-enroll in FSA every year.
Health Care Flexible Spending Account (FSA)
This account allows you to use pretax dollars to pay for eligible medical, dental,
prescription drug, vision and hearing expenses, for yourself and eligible dependents.
Dependent Care Flexible Spending Account (DCFSA)
This account allows you to use pretax dollars to pay for eligible dependent care expenses for your children under age 13 and other qualifying dependents. This enables you and your spouse to work, actively look for work or attend school full-time. This quick reference is an overview of how to use your FSAs. For more information, visit flores247.com.
Commuter Flexible Spending Account (CFSA)
This account is a pre-tax benefit that allows you to set aside money to pay for qualified work-related commuting expenses. The IRS allows a maximum of $340 per month to be contributed to each of the two Commuter Benefits accounts: Transportation and Parking.
- Transit passes
- Tokens
- Fare cards
- Mass transit vouchers
- Parking expenses incurred at/near work
Only the following cities and states are allowed to enroll in Commuter FSA: Philadelphia, PA, New Jersey, Staten Island, NY and Maryland.
Current FSA Contribution Limits
The IRS sets limits every year on how much you can contribute to each type of FSA.
| 2026 Health Care FSA | 2026 Dependent Care FSA |
|---|---|
|
Minimum of $125 up to a Maximum of $3,400 (Limit applies to individuals, married couples filing jointly, and married couples filing separately.) |
Minimum of $125 up to a Maximum of $5,000 or $2,500 (if married couple filing separately) |
Eligible Expenses
To use your FSA properly, you need to know what’s eligible.* Here are a few examples of eligible expenses.
| Health Care FSA | Dependent Care FSA |
|---|---|
|
|
* For a complete list of eligible expenses, see Publication 502 (Medical and Dental Expenses) and Publication 503 (Dependent Care Expenses), available at irs.gov/publications/index.html. Consultation with your tax advisor is recommended.
Getting Started
Deadlines Matter - USE IT OR LOSE IT by December 31, 2026
Timing is everything when you are using an FSA. For 2026, the IRS requires that you incur and submit eligible expenses by the appropriate deadline(s), or you will lose any money that is more than $680 left in your account.
Rollover Feature
Rack Room Shoes allows you to roll over up to $680 of unused Health Care FSA funds at the end of the year.
- The rollover funds can be used through March, 15th of the following year.
- You don’t need to do anything to ensure your funds rollover.
- As long as you are enrolled as of the last day of the plan year, any amount up to $680 remaining in your Health Care FSA will automatically roll over to be used for expenses you can incur during the new plan year.
- You must elect this benefit every year during open enrollment to keep your FSA.
- Any unused funds above $680 will be forfeited if not used by the December 31, 2026 deadline.
- Incur expenses from Jan. 1, 2026, through Dec. 31, 2026. Submit expenses by March 31, 2027.
- Incur expenses from Jan. 1, 2026, through Dec. 31, 2026. Submit expenses by March 31, 2027.
Using Your FSA Funds
HEALTH CARE FSA
There are two ways to use the funds in your Health Care FSA.
- Flores® Debit Card – You will receive a Flores debit card to pay for eligible expenses. When you use the card, the funds automatically come out of your FSA.
- Reimbursement – You can submit an online request for reimbursement through flores247.com. As an alternative, you can complete a paper claim form and fax or mail it to Flores.
DEPENDENT CARE FSA
You must file a claim for dependent care expenses. You will receive a check in the mail, or a direct deposit will be made to your bank account (if requested).
Need to know your FSA balance?
HERE ARE 3 WAYS TO CHECK IT!
- Online flores247.com
- Call (800) 532-3327
- Download the App
Need to Submit a Claim?
- Log on to flores247.com to submit claims.
- For questions, call the Flores Information Line (800) 532-3327.
Managing Your Flores Account
When you enroll in an FSA for the first time, you will receive a Flores debit card. If you re-enroll in an FSA, you will continue to use your current Flores debit card. You will also have access to tools and resources to help you easily manage your account online.
Over-the-Counter (OTC) Drugs
The CARES Act of March 2020 expanded the benefits of FSAs by removing the prescription requirement for several OTC drugs and medicines, and by adding feminine hygiene products to the list of expenses eligible for reimbursement. This means you can use your FSA to reimburse yourself for several everyday items, or if you have a debit card associated with your account, you can use the card to pay for them directly. Prior to the passage of the act, these items were only eligible for reimbursement with a prescription. Now that the prescription is no longer required, you can make these purchases using the pre-tax funds you’ve set aside. Log onto the Flores website for a complete list of eligible expenses.
