Flexible Benefits

TASC manages medical, limited purpose and dependent care flexible spending account programs.

Total Administrative Services Corporation (TASC)
800.575.6277
Monday-Friday, 7 a.m. to 5 p.m. CT
www.stateoftntasc.com

New hires may enroll by completing the following form and submitting it to the Office of Human Resources: Medical, Dependent Care and Limited Purpose —Plan Year 2026

For those making a mid-year change due to a Qualifying Life Event, you are required to complete the FSA Mid-Year Change Enrollment Form.

Flexible Spending Accounts Resources

TASC FAQs

Contribute to flexible spending accounts to pay for health care and/or dependent care while saving money on your taxes. An FSA allows you to pay certain expenses from your pre-tax income rather than after-tax income. The maximum amount you can contribute to an FSA is set by the IRS. The limits are subject to change yearly, and your employer may set a lower limit than the maximum allowed by the IRS.

Eligibility: Insurance-eligible state and higher education employees can enroll in the following FSAs.

Annual limit - $3,300 | Carryover limit - $660

Use to pay for certain medical, dental, vision and prescription costs not covered by your insurance.
You do NOT qualify for a medical FSA if you are enrolled in the CDHP/HSA.
Up to $660 of your unused FSA balance can be carried over into the next plan year instead of you “losing it.”
Your entire election, up to $3,300 in 2026, is available for use at the beginning of the year, or within 1-2 months after you enroll.

Annual limit - $3,300 | Carryover limit - $660

May only be used to pay for certain dental and vision costs not covered by insurance.
For employees enrolled in the CDHP/HSA, the L-FSA is a great way to save tax-free on eligible vision and dental expenses while continuing to grow your HSA balance.
- Employees who have a Medical FSA and move to the CDHP Medical Plan will gain eligibility for the HSA. They are able to transition their Medical FSA into a LP-FSA to keep those remaining dollars. Contact TASC or State of TN Benefits Administration for more information.
Your entire election, up to $3,300 in 2026, is available for use at the beginning of the year, or within 1-2 months after you enroll. Up to $640 may be carried over into next year instead of you “losing it.”

Medical FSA and L-FSA members get a debit card to use their funds at the pharmacy or provider’s office. Per IRS rules, TASC may need you to verify some debit card purchases by providing your explanation of benefits or other claims document. Make sure to respond to any verification request from TASC, or your debit card may be suspended and any unsubstantiated claims may be reported to your employer for inclusion on your W2 or turned over to a collection agency. If your debit card is suspended, you will still have access to your flexible account funds but will need to file paper claims, fax them or upload them on the TASC website or app.

Annual limit - $3,750 (or $7,500 if married and filing a separate tax return). No carryover amount allowed. Any remaining funds on December 31 are forfeited.

Used to pay for certain dependent care costs, such as after school care, baby-sitting fees, adult or child daycare and preschool. Certain requirements must be met by the eligible employee and/or his or her spouse. For details, review the governing Plan Document located on the Publications page.

In 2026, TASC will conduct non-discrimination testing on state employees’ dependent care FSAs to ensure the plan treats everyone fairly and does not discriminate in favor of employees who are highly compensated. The IRS defines a highly compensated employee as someone with an annual salary of $160,000 or more in 2025. If the test finds this benefit does not meet the federal requirements, contributions for highly compensated employees may be changed to comply with the law.
Contributions to flexible benefits plan accounts may be modified, reduced or recharacterized at any time to comply with applicable Internal Revenue Code provisions.

Important! You cannot enroll in both a medical FSA and L-FSA in the same year.

Availability of Funds:

Employees who enroll in a medical FSA or L-FSA during Annual Enrollment will have their full election amount available to them up-front during the first week of January, or within approximately 1-2 months after they enroll. For example, with a medical FSA, if you contribute $500 per year, you’ll have access to those funds 1-2 months after you enroll. Then you’ll pay the funds back with money evenly deducted from your paychecks.
DC-FSA funds are only available as they are taken from your paycheck; your full election amount is not available up front. You can only file claims for dependent care if you have a sufficient amount in your account to pay for them. You may not file claims for a future date.

Medical FSA and L-FSA members will get a debit card to use their funds at the pharmacy and provider's office, making it quick and easy to pay your deductible, copays and coinsurance.
TASC will send all newly-enrolled medical FSA and L-FSA participants a debit card. New hires and those newly enrolled will receive a debit card within 3-4 weeks of enrollment. You may order additional debit cards for your dependents (cost may apply) by logging into your account at the TASC Online Login Page. Once logged into your home page > Click on the "TASC Wallet" tab on the right side of the screen on > Request New Card -OR- you may call customer care Monday-Friday, 7 a.m. to 5 p.m. CT at 800.575.6277 to order a debit card.
You can use your debit card at pharmacies, doctor’s offices and other health care facilities to pay from your account.
If you enroll in the CDHP/HSA and an L-FSA, the same debit card will work for both accounts. TASC will take any dental or vision expenses from your L-FSA “purse” on the debit card before using any of your HSA funds. This allows your HSA funds to continue to grow.
If you currently have an HSA with a debit card and plan to enroll in an L-FSA, you will use the same debit card for both your HSA and L-FSA eligible purchases.
Dependent care and transportation and parking FSA participants will not use a debit card.
You should keep all health, dental and vision insurance explanations of benefits when using the debit card to pay for eligible health care expenses. TASC may contact you later and request them.

If you don’t respond to requests from TASC to provide documentation for a debit card purchase, your card may be deactivated and the expense reported to your employer for inclusion on your W2 as a taxable expense or turned over to a collection agency.

If you enrolled in a medical FSA or L-FSA, you should go online at optumbank.com/Tennessee to create an account and register your new debit card to pay many of your medical expenses that are not already covered by insurance. After creating your account, you can review your claims activity, upload documentation, provide claims substantiation (if requested), order an additional debit card and see your account balances.

If you are enrolled in a DC-FSA only, you cannot use a debit card, but you can create an online TASC account to see your DC-FSA account balance, claims and activity.

You can order an additional TASC card, your account debit card, once you log in at optumbank.com/Tennessee. New users will need to register first.

Click here for instructions on how to receive reimbursements for claims for your medical, limited purpose, dependent care and transportation and parking FSAs.