Military Finances 201: Tricare FSA's

Medical expenses can really add up, even if your family is covered by Tricare. Co-pays and expenses not covered by Tricare can eat into your budget. But what if you could get some of those expenses on sale 15%, 22% or maybe more? With a Health Care Flexible Spending Account (HCFSA) you can.

What is a Tricare FSA?

A HCFSA (which a Tricare FSA is) allows you to contribute money pre-tax to an account that you can use to pay for qualified health care expenses. Specifically, you can contribute up to $3,300 (2025) to a HCFSA per year.

The amount you contribute to a HCFSA is not subject to Social Security Tax (6.2%); Medicare Tax (1.45%); Federal Income Tax (10% - 28% or more) or State Income Tax (if you're subject to it).

What I can I Spend Tricare FSA Funds On?

You can use the funds for several things. Here is a partial list:

Deductibles and copayments
Wellness care like chiropractors, acupuncture and massage therapy
Dental Care
Eyeglasses
Even Sunscreen

For a full list of what the funds can be used for visit FSAFEDS.gov

Who is Eligible for a Tricare FSA?

The list of who is eligible is about what you would think.

Active Duty
Reserve Forces on Active Duty Orders
National Guard Members Performing Active Guard Reserve Duty

How Do I Sign up for a Tricare FSA?

You have about a week (as of this writing) to sign up for the Tricare FSA. You need to do it by 31 Mar 25. If you miss that deadline, you'll need to wait until open season in the fall to sign up for a Tricare FSA for 2026.

Are There Downsides to Using the Tricare FSA?

Probably the biggest downside to a HCFSA is use it or lose it. In most cases if you contribute funds to a HCFSA and don't spend them in that calendar year, you lose the funds. Specifically, the Tricare FSA does allow you to carry over $660 in funds, but only if you re-enroll in the FSA.

Also, if you lose your job after you contribute to a HCFSA and haven't spent the money, you lose it as well. Granted that scenario is pretty unlikely for a military member.

Military Finances are Different

Civilians have had access to HCFSA's for years (maybe even decades). This isn't the only way civilian and military finances are different. In fact military members and veterans have significant opportunities and benefits not available to civilians. That is why we think you should work with a financial advisor or planner that works with Active and Retired Senior Military Officers and NCO's each and every day. If you'd like to find out how we work with people just like you, use the button below to schedule a free, initial consultation.

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