New health care savings benefit coming to troops in 2025

"Active-duty service members will have a new benefit in 2025: health care flexible spending accounts.

Service members will have the option to open health care flexible spending accounts for the first time during a special enrollment period in March 2025."

"In essence, a health care FSA is a savings account that can be used to pay for items not covered by health or dental insurance. Such accounts have been available for years to employees of many federal agencies and private companies.

Troops can contribute up to $3,200 a year in pretax earnings toward eligible out-of-pocket health care expenses, with a minimum contribution of $100 annually. The money will be automatically withdrawn from their paycheck over the course of the year and deposited into their flexible spending account. The Internal Revenue Service determines eligible expenses and contribution limits, the latter of which may vary by tax year."