FLEXIBLE SPENDING ACCOUNT (FSA) SOURCEBOOK - 2025-2026 PLAN YEAR - Commonwealth of Virginia

Sep 19, 2026

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Flexible Spending Account (FSA) Sourcebook for the 2025-2026 plan year explains how Virginia employees can set aside pre-tax payroll contributions for qualified health care and dependent care expenses. It covers eligibility, enrollment timing (Open Enrollment and Qualifying Life Events), and how contributions are deducted during the plan year. Key rules include the use-it-or-lose-it requirement, coverage-period limitations, administration fees, reimbursement request deadlines, and guidance on managing FSA elections and card transactions.

LanguageEnglish

CategoryForms

FormatPDF

Pages13

Reading Time5 min

AccessFree to download

FLEXIBLE SPENDING ACCOUNT (FSA) OVERVIEW

Know What’s Inside

LEARN ABOUT HEALTH CARE FSA

LEARN ABOUT DEPENDENT CARE FSA

FSA ADMINISTRATION AND RULES

FSA WORKSHEETS

IMPROPER FSA PAYMENTS

CHANGING YOUR ELECTION

APPEALS

EXTENDED COVERAGE

FLEXIBLE SPENDING ACCOUNT (FSA) SOURCEBOOK 2025-2026 PLAN YEAR Commonwealth of Virginia (03/25) CONTENTS Know What’s Inside FLEXIBLE SPENDING ACCOUNT (FSA) OVERVIEW 4 – 5 | • Sign Up and Save with an FSA
• Get to Know Your FSA
• FSA Eligibility
LEARN ABOUT HEALTH CARE FSA | 6 – 12 | | --- | --- | | • Save money with a Health Care FSA
• Important Health Care FSA Rules
• Health Care FSA Expenses
• Reimbursement Requests
• Your Inspira Card®
LEARN ABOUT DEPENDENT CARE FSA | 13 – 16 | | • Save Money with a Dependent Care FSA
• Important Dependent Care FSA Rules
• Important Dependent Care FSA Tax Information
• Reimbursement Requests
• Dependent Care FSA Expenses
REGISTER YOUR ACCOUNT ONLINE | 17 | | FSA WORKSHEETS | 18 | | • Health Care FSA Worksheet
• Dependent Care Worksheet
IMPROPER FSA PAYMENTS | 19 | | CHANGING YOUR ELECTION | 19 – 20 | | APPEALS | 20 – 21 | | EXTENDED COVERAGE | 22 | OVERVIEW Flexible Spending Account (FSA) An FSA allows you to set aside money from your paycheck, before taxes, to use on qualified health care and dependent care expenses. You may enroll in an FSA during Open Enrollment, or within 60 days of a consistent Qualifying Life 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 because you must use all the money during the plan year, or lose it. You Can Elect to Enroll in One or Both of These FSAs | | HEALTH CARE FSA | DEPENDENT CARE FSA | | --- | --- | --- | | Maximum amount you can put into the account each plan year | $3,300 | $5,000 | | Eligible expenses | • Prescriptions | • Before and after-school care | | (see detailed list on page 8 for Health Care and page 16 for Dependent Care) | • Deductibles, coinsurance and copays
• Dental care
• Vision care | • Child day care, adult care or elder care
• Summer day camp | All full and part-time classified employees and faculty members who are eligible for the State Health Benefits Program may participate in the FSA. Sign Up and Save with an FSA An FSA is a plan sponsored by the Commonwealth of Virginia that allows you to set aside a part of your income on a pre-tax basis for eligible health or dependent care expenses. The plan year begins July 1 and ends June 30. Your coverage period for incurring expenses is based on your participation in the program. Important Dates Plan year starts: July 1, 2025 Plan year ends: June 30, 2026 Last payroll deduction for plan year: July 1, 2026 Last day to incur eligible expenses: June 30, 2026 or last day of your coverage period Last day to submit reimbursement requests and verification of outstanding card transactions: September 30, 2026 or three months from the end of your coverage period, whichever is sooner. Last day to use FSA card for July 1, 2025 – June 30, 2026 expenses: June 30, 2026 4 Get to Know Your FSA Review this FSA Source book to understand how you and your family can save. Once you decide how much to contribute to your Health Care FSA and/or Dependent Care FSA, the contribution is deducted in equal amounts from your paychecks during the plan year. The savings examples in this guide use a 30 percent tax rate. But your savings may vary based on your personal annual tax rate. Please consult your tax advisor for more details. Your Health Care FSA funds are available to you at the beginning of your coverage period. Dependent Care FSA funds are only available as they are deducted from your paycheck. For both accounts, your funds are deducted before federal and state taxes are calculated on your paycheck. With either account, you benefit because less of your paycheck is taxable, which means more spendable income. Administration Fee If you choose to enroll in one or both FSAs, one monthly administration fee of $2.10 will be deducted

FAQs

What is an FSA and how does it save money?

An FSA lets you set aside money from your paycheck on a pre-tax basis for qualified health care and dependent care expenses. Because less of your paycheck is taxable, you generally have more spendable income.

When can I enroll in an FSA for the 2025-2026 plan year?

You may enroll during Open Enrollment or within 60 days of a consistent Qualifying Life Event (QME). For new hires, the initial election period is within 30 calendar days of your hire date or when you become newly eligible.

What happens if I don’t use all my FSA money?

FSAs follow a use-it-or-lose-it rule requiring you to use all funds for eligible expenses by the end of the coverage period. Remaining dollars do not roll over to the next plan year and are not returned.

Sep 19, 2026

Upload by Patrick