NYS Flex Spending Account (FSA) 2027 Open Enrollment
By Labor Relations | Oct 28, 2026
The NYS Office of Employee Relations (OER) has announced the 2027 Open Enrollment Period for the Flex Spending Account (FSA) Program which will run from November 2, 2026 to 11:59 PM (EST) December 07, 2026. This time period is strictly enforced. The Internal Revenue Service (IRS) regulations does not allow employers to make exceptions for employees who miss the deadline, regardless of their reason.
The FSA program provides eligible employees with an opportunity to pay for certain health care, dependent care, and adoption care expenses using pre-tax bi-weekly payroll deductions. However, employees are encouraged to review their anticipated expenses when considering participation for the 2027 plan year. Employees may be eligible to enroll in one or more of the following accounts: Health Care spending Account (HCSA), Dependent Care Advantage Account (DCAA) or the Adoption Advantage Account (AAC).
Under New York State regulations, employees have until March 15, 2028 to submit claims for unused contributions in the Dependent Care and the Adoption Advantage Accounts to spend on new expenses. However, the Health Care Spending Account allows a carryover of up to $680.00 from CY 2026 into CY 2027. Unused funds remaining in any of the FSA accounts at the end of the designated periods will be forfeited under the “Use it or Lose it rule”. For CY 2027, under the Health Care Spending Account (HCSA) a “carry-over” of $680.00 will be allowed for expenses incurred in the CY of 2026. These funds will be available in the 2027 Accounts by April 30, 2027. The grace period for both the adoption and dependent care accounts will continue, meaning any remaining funds from the 2026 plan year can be use to pay for expenses incurred between January 1, 2027, and March 15, 2027.
Accordingly, employees are strongly encouraged to estimate his or her expenses carefully and to submit claims before the end of the run-out-period, to avoid forfeiture.
Health Care Spending Account (HCSA)
Under the Health Care Spending Account, an employee may claim expenses that are not covered by his or her health insurance or are in excess of the insurance allowance.
- An employee can contribute from $100.00 to $3400.00 for CY 2027
- Must be eligible for enrollment in the New York state Health Insurance Program (NYSHIP)
Dependent Care Advantage Account (DCAA)
The Dependent Care Advantage Account helps eligible employees pay for qualifying work-related dependent care expenses such as eldercare, disabled services, before/after school programs, summer day camps, family daycare provider, and many more: For CY 2027, some enrolled employees are eligible for a contribution from New York State that ranges from $500.00 to $1000.00 and is based on the employee’s salary (see attached brochure).
- Employees can contribute from $100.00 to $7,500.00 for CY 2027
Adoption Advantage Account (AAA)
The Adoption Advantage Account allows employees to pay for expenses related to the adoption of an eligible child with pre-tax dollars; such as home study and application fees, reasonable and necessary legal adoption fees, court costs, Attorney fees, Medical services associated with a child with special needs and other expenses that are directly related to and are for the principal purpose of a legal adoption.
- An eligible child must be under the age of 18 years or a disabled individual physically or mentally incapable of self-care and must not be a stepchild.
- Employees can contribute up to $17,670.00
Once enrolled in the Adoption FSA, an employee may not change his or her mind unless the following occur:
- Beginning or end of adoption proceedings
- Beginning of or return from leave of absence (employee or spouse)
Employees who are currently enrolled in any of the three plans, must re-enroll if they wish to continue the benefits in 2027. Social Security numbers should not be used when enrolling in these programs, instead, use your NYS Identification Number, which appears on your pay stub next to NYS EMPLID and begins with the letter “N” (see the third column under your name in the top portion of the pay stub).
For 2027, Total Administrative Service Corporation (TASC) will continue to be the Administrator for the Flex Spending Account. To enroll in the program or obtain additional information, you must contact the TASC at the website address oer.ny.gov/FSA or call the toll-free number (800) 358-7202.
Please note that the enrollment deadline date of December 07, 2026 at 11:59 PM. Eastern Time (ET) is strictly enforced.