Active-Duty Troops to Save on Health Expenses with New FSA Benefit

Health care flexible spending accounts (FSAs) will shortly become a useful financial tool available to active-duty service personnel. Troops can sign up for FSAs during a special enrollment period starting in March 2025, therefore marking the first time this benefit has been granted to active-duty personnel.

An FSA lets users save pretax income—up to $3,200 yearly in 2025—to pay qualified out-of-pocket medical expenses. Beginning at $100 yearly, contributions are deducted from paychecks all year long. Under management by the Federal Flexible Spending Account Program (FSAFEDS), the accounts average 30% on eligible medical expenses, therefore providing notable tax savings.

Copays, deductibles, prescription medicines, braces, glasses, contact lenses, and alternative wellness therapies like acupuncture and chiropractic care are among more than 600 IRS-approved expenses. Included are also commonplace things like hand sanitizer and menstruation care products.

Some Reserve Component personnel engaged in active Guard and Reserve duty will also have access to FSA enrollment.

Reviewing their out-of-pocket health costs from prior year helps service members get ready for the March enrollment season. One can find possible savings using a calculator supplied by FSAFEDS.

This new benefit empowers warriors to better control their health care expenses while concentrating on their duty obligations by matching them with numerous government employees and private-sector professionals who have long appreciated the financial benefits of FSAs.

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