Flexible Spending Accounts
FSA Grace Period for the 07/2019 - 06/2020 Plan Year
In an effort to meet the needs of our employees during these extraordinary times, the Commonwealth is adding a one-time Grace Period to the 2019-2020 FSA Plans which will extend the period to incur claims until October 31, 2020. Please review the following link for more detailed information regarding the grace period for flexible spending accounts: FSA Grace Period Until 10/31/20 | PDF
A Flexible Spending Account (FSA) allows you to set aside money from your paycheck, before taxes, to use on qualified health care and dependent care expenses. You may elect to participate during the annual Health Care and Flexible Spending Accounts open enrollment each spring, or within 60 days of a qualifying mid-year event (QME). You choose the amount to set aside based on your anticipated eligible expenses. The money is deducted from your paycheck in equal amounts and placed in your FSA. Plan wisely on how much to set aside in your FSA account because you must use all the money during the plan year, or lose it. Please note that the FSA ends on June 30th of the plan year and requires a positive enrollment if you wish to set up an FSA plan for the new plan year. Additional information and resources are available at the COVA Employee Benefits website. To take advantage of either or both of these flexible spending accounts, please review the 2019-2020 Flexible Spending Account (FSA) Sourcebook | PDF for important information. If you decide a plan is right for you, you may begin participating by completing a State Health Benefits Enrollment Form | PDF during the open enrollment period, or within the 30-day window following your hire date, or the date you become newly eligible for the State Health Benefits program. If you experience a mid-year qualifying event such as a change in marital status, the number of dependents, a change in employment status, or another life event please contact Human Resources for assistance.
A Dependent Care FSA is a plan sponsored by the Commonwealth of Virginia that allows you to set aside part of your income on a pre-tax basis to pay for eligible dependent care expenses throughout the coverage period. You save money on expenses you’re already paying for services such as child care, pre-school, or care for an adult necessary to allow you to work.
A Health FSA allows you to set aside part of your income on a pre-tax basis and then use that money to pay for eligible out-of-pocket health care expenses for you, your spouse and your dependents. With a Health FSA, you can reduce your taxes and increase your take-home pay. That’s because you can use pre-tax dollars to pay for eligible health care expenses such as copays, coinsurance, and deductibles that you may now be paying with post tax dollars.