FSA & HSA Frequently Asked Questions

Frequently Asked Questions

What is an FSA?

Flexible Spending Account (FSA) is an employer-established benefit account allowing you to set aside pre-tax dollars (up to $2,750 per year, per employer) to cover eligible medical expenses. Flexible Spending Accounts enable you to save money on certain medical and dental costs covered by your plan. Your FSA dollars can be used to cover medical costs, including eligible over-the-counter (OTC) Health & Safety products, for you and any dependents claimed on your federal tax return.1

What is an HSA?

Health Savings Account (HSA) is a type of savings account that allows you to set aside pre-tax dollars (up to $3,550 per individual or $7,100 per family) to cover eligible medical expenses. An HSA can be used only if you have a High Deductible Health Plan (HDHP). Please check with your plan administrator to see if your plan is eligible for an HSA.

What items are eligible?

Many FSA- and HSA-eligible items are available to buy online. Only items that do not require a prescription from your doctor are included in Target’s online catalog of FSA and HSA eligible products. Please check with your plan administrator to verify that items designated as FSA and HSA eligible at Target are also eligible for reimbursements. For a full list of qualifying health care products eligible for FSA and HSA reimbursement, please visit Publication 969 on the IRS website.

Deadlines and Rollovers?

Funds allocated to an FSA can be spent on eligible items in the calendar year that the plan covers. While FSA funds are designated to be fully spent in the same year that contributions to the account are made, select plans allow either (1) a carryover of $500 to the next calendar, or (2) a grace period of up to 2 months and 15 days at the beginning of the next calendar year to spend all unused funds in the account. For full details on your plan’s policy for unspent funds, please refer to your FSA plan agreement or contact your plan administrator.

Funds allocated to an HSA account roll over year to year if you do not spend them fully. For full details on your plan’s policy, please refer to your HSA plan agreement or contact your plan administrator.

What is the CARES Act?

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress and signed into law 3/27/2020. The bill includes a change impacting the use of funds from HSA, HRA and FSA health benefit accounts, permanently expanding the list of eligible items for reimbursement to include over-the-counter medications that used to required a doctor’s prescription and feminine products. The bill had a retroactive start date of 1/1/20, meaning that participants can seek reimbursement for eligible purchases made since the beginning of the year.

How do I get reimbursed for FSA and HSA eligible items that I purchase on Target.com?

We do not currently accept FSA or HSA cards. Please use a credit card, debit card or gift card to pay for your eligible items and then submit the receipt to your plan based on the current policies for reimbursement. Sign into your account to find your receipt to submit for reimbursements.

1The content provided is from other public sources and has been reproduced here for the convenience of our guests. This content is meant to be an educational resource only. If you have questions about your FSA, HSA or HRA, please reach out to your insurance companies or other qualified resources.