Flexible Spending Accounts
Flexible spending accounts enable you to pay for certain expenses on a pre-tax basis, making your money go farther. For example, setting aside $5,000 in a Dependent Daycare Reimbursement account enables you to spend the whole $5,000 on daycare. Receiving the $5,000 in pay would leave roughly $3,500 after taxes for daycare expenses.
Learn More at Chard Snyder’s Video Library
Pre-Tax FAQs How Does it Work?
During Open Enrollment, you may enroll in
- Full Flexible Spending Account (FSA)
- or Limited Flexible Spending Account (LMT) - for Basic Health members only
- Dependent Daycare Reimbursement Account - for children under age 13
Additional Account Info
Eligibility: Active, benefit-eligible employees are able to have FSA accounts
Direct deposit for paper claims is mandatory. If you are a new enrollee, you must provide direct deposit information to Chard Snyder for reimbursement of all non-Benny Card transactions.
Contribution minimums have decreased to $120.
Full Flexible Spending Account
Available for Choice and Value Health participants
Helps offset out-of-pocket health care expenses, such as co-payments, deductibles, coinsurance, and certain over-the-counter medications
Limited Flexible Spending Account
Available for Basic Health participants
Helps offset out-of-pocket dental and vision care expenses; may be used in combination with a Health Savings Account (HSA)
Dependent Daycare Reimbursement Account
Funds available after they have been put into your account (meaning the amount increases as additional contributions come from your paychecks)
May be more beneficial than the federal dependent care tax credit for most individuals whose adjusted gross income is greater than $25,000 (consult a tax professional for an assessment of your personal situation)
Mid-Year and Leave-Related Changes
Mid-Year Changes: During the plan year, changes are allowed only if you have a change in status and provide documentation. To see if you are able to make mid-year changes, review the list of life events that cause a change in status linked below in Resources. Requests to modify flexible spending accounts due to a change in status must be received in HR within 60 days of the date of the event that caused the change in status. Allowable changes take effect the first of the month following the month in which the event occurred.
- Generally, after a change in status, you may do the following:
- increase contributions or newly enroll if change causes you to gain a dependent or lose coverage (ex. New child or spouse, tax-dependent parent, divorce)
- decrease contributions or cancel if change causes you to lose dependent or gain coverage elsewhere (ex. New spouse has dependent care FSA or becomes unemployed, child lives primarily with ex-spouse)
- You can only contribute to a health care FSA during unpaid leave, not to a dependent care FSA
- If you want to receive reimbursements during unpaid leave, you must make after tax contributions to your account. Reimbursement is based on the total amount you elect for the year and will be paid on request.
- If you did not cancel or request a change in participation before taking leave and you return in the same year, you will pay more monthly or biweekly to reach your annual contribution amount.
- UVA will not make retroactive changes to excess contributions or deductions.