FSA for Medical, Dental, Vision and Dependent Daycare

Flexible Spending Account


A Flexible Spending Account (FSA), makes it possible for you to pay for certain expenses on a pre-tax basis, which makes your money go farther. 

All Health Plan participants may have some form of a Flexible Spending Account (FSA), but Basic Health participants may only have a Limited FSA for eligible dental and vision expenses. 

To help UVA employees maximize their money for medical, pharmacy, dental, vision, and dependent-care expenses, the University has two options: Flexible Spending Accounts (FSAs) and Dependent Daycare Reimbursement Accounts. UVA FSAs, including Dependent Daycare Reimbursement Accounts, are managed by Chard Snyder. Any reimbursements you receive from Chard Snyder must be deposited directly into your personal checking or savings account. 

Changes

FSA minimum and maximum contribution amounts (and other program details) remain the same for 2021 as they were for 2020.

2020 elections for FSAs will NOT carry over to 2021.

Action Items

  • If you want to keep your FSA open, you must re-elect in the FSA program for 2021 during Open Enrollment
    • You must re-elect a dollar contribution for your FSA while in Open Enrollment in Workday
    • If you do not re-elect the FSA during Open Enrollment, your benefit will be waived and will not carry over to 2021
  • FSA funds must be used by the end of the calendar year. However, UVA has a grace period of 2 1/2 months. This allows you to spend FSA money through March 15 of the following year. After the grace period ends, you will lose any remaining money in your FSA account. You may only start, stop, or change FSA elections during Open Enrollment or if you have a qualified life event
    • Chard Snyder has an online FSA store where you can use your FSA dollars. Check out the FSA Eligibility List to find out which kinds of over-the-counter products and medications you can purchase.
  • Listen to the HSA/FSA podcast or the Dependent Daycare FSAs podcast to learn more about these types of FSAs.

Types of Accounts

Expand the items below to learn more about the various types of savings accounts. 

  • Full Flexible Spending Account (FSA)

    • May be used by Choice and Value Health participants
    • Helps offset out-of-pocket health care expenses, such as copayments, deductibles, coinsurance, and certain over-the-counter medications
    • Full amount of annual contributions available after your first paycheck of 2021
  • Limited Flexible Spending Account (LMT)

    • 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)
    • Full amount of annual contributions available after your first paycheck of 2021
  • 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)

    Listen to UVA Human Resources' "For Your Benefit" podcast about Dependent Daycare FSAs. A full transcript of the podcast is available on the right sidebar of this webpage in the "Open Enrollment Podcasts" box.

Eligibility

Some eligibility requirements are unique to each FSA; others apply to most, if not all, of the accounts.

  • Employment Status

    In general, to be eligible for FSAs (including Dependent Daycare Reimbursement Accounts), you must be a full- or part-time UVA employee, and regularly scheduled to work at least 20 hours/week. To be eligible for FSAs, you must be:

    • Faculty
    • Classified Staff
    • Medical Center Team Member
    • Postdoctoral Research Associate
    • Senior Professional Research Staff
    • University Staff
    • Housestaff

    Mandatory Direct Deposit: For all paper claims, direct deposit is required. If you are a new enrollee, you must provide direct information on your personal Chard Snyder account for reimbursement of all non-Benny Card transactions. 

  • Health Plan Type

    UVA offers two types of FSA: full and limited. Your UVA Health Plan option determines which type of FSA you are eligible for.

    • Choice or Value Health participants may enroll in the full FSA, which can be used for eligible medical, dental, and vision expenses
    • Basic Health participants may enroll in the limited FSA, which can be used for eligible dental and vision expenses. They can also enroll in a Health Savings Account, which can be used for eligible medical, dental, and vision expenses.
  • Dependent Criteria

    To be eligible for a Dependent Daycare Reimbursement Account, your dependents must meet one of the following criteria:

    • Are under age 13 at the time of service and are claimed as dependents on your taxes
    • Are unable to care for themselves, such as adult children with disabilities or elders (these dependents are eligible regardless of age)

    All dependents must live with you for more than half the year for you in order to use funds from a Dependent Daycare Reimbursement Account for their care.

    Note: A Dependent Daycare Reimbursement Account may be more beneficial, in terms of a tax benefit, than the federal dependent care tax credit for most individuals with an adjusted gross income > $25,000. Consult a tax professional for an assessment of your personal situation.

Contributions

Money contributed to UVA FSAs must be used during that year, as funds do not roll over. FSAs and DCAs do have grace periods to spend the money beyond year’s end. You may continue to spend unused funds until March 15*. The deadline to submit claims is April 30. Since the money is use-or-lose, make sure you put aside an amount that will be reasonable for you to spend within the allotted time.

Keep in mind that contributions are for the calendar year, regardless of when you are hired. 

*Note: If you sign up for Basic Health with a Health Savings Account (HSA) during Open Enrollment after having a full FSA previously, your FSA balance needs to be $0.00 by December 31, regardless of the grace period, for your HSA to be open at the beginning of the next year. Visit the Open Enrollment Health Plan 2021 webpage for more information.

  • FSAs (Full and Limited)

    For both limited and full FSAs, the following annual contribution information is the same:

    Minimum: $120

    Maximum: $2,500

  • Dependent Daycare Reimbursement Accounts

    The following are the annual contribution limits:

    Minimum: $120

    Maximum: $5,000 (household limit)

    When choosing how much to contribute, try to anticipate dependent eligibility changes. For example, if your child will be turning 13 mid-year, plan your contributions accordingly so you don’t over-contribute for a full year of care.

  • Managing Contributions

    UVA’s FSAs and health savings accounts (HSAs) are managed by Chard Snyder.

    The full FSA contribution amount you choose for the year is available as soon as the account is open. Payroll deductions for the FSA would continue through the remainder of the year.

    Dependent Daycare Reimbursement Account funds are available after they have been deposited in your account by payroll deductions each paycheck. It takes a few bank days after payday for payroll-deducted funds to show in your account.

    These funds must be used by the end of the calendar year. However, UVA has a grace period of 2 1/2 months. This allows you to spend FSA money through March 15 of the following year. After the grace period ends, you will lose any remaining money in your FSA account. 

    Mandatory Direct Deposit: For all paper claims, direct deposit is required. If you are a new enrollee, you must provide direct deposit information to Chard Snyder for reimbursement of all non-Benny Card transactions. You can enter your direct deposit information on your personal Chard Snyder account beginning Jan. 1, 2021.

Enroll in Workday

  • To review and elect your benefits in Workday

    • Navigate to Workday
    • In your Workday Inbox, click on the message titled "Open Enrollment Change: [Your Name] on 01/01/2021"
    • Follow the instructions to navigate through each part of the Workday Open Enrollment screens:
      1. Modify medical, dental, vision benefits, if desired
      2. Add or drop dependents, if applicable (adding a spouse requires spousal affidavit to be completed before finalizing your benefits elections). Confirm social security numbers for dependents.
      3. Elect/waive Health Savings Account and Flexible Spending Account
      4. View insurances and long-term disability
      5. Confirm or change beneficiaries for life insurance
      6. If you are not ready to submit, back up one page using your "back" arrow in your browser, and select "Save for Later"
      7. When you are ready to submit, electronically sign at the bottom of the last page and press the SUBMIT button
      8. Workday does not currently offer the option to confirm your elections in writing, so after you submit your elections, it is a good idea to print a copy of your elections confirmation for your records. This will save a PDF of the document, which you can print or save.
      9. Watch for additional emails in your Workday Inbox related to post-Open Enrollment action items you made need to take
    • The following Workday Job Aids and training video offer additional detailed instructions:

     

  • If you Change Your Mind on an Open Enrollment Choice You Made and Open Enrollment Has Not Closed

    You can make changes to your elections as long as the Open Enrollment period is open, even after you have submitted your elections.

    1. From the Benefits app in Workday, click on "Change Open Enrollment"
    2. You will be making changes to what has been previously submitted. Any changes made will need to be resubmitted. If you do not resubmit, the changes will be deleted and the previous submission will remain in effect.
    3. Move through the same screens to elect or waive coverage
    4. Once changes are complete, electronically sign at the bottom of the last page and press the SUBMIT button
    5. Print the new confirmation of benefits elections
  • Open Enrollment Workday System Walk-Through

    Watch this short video that gives step-by-step instructions for navigating the Open Enrollment screens in Workday.

FAQs - FSAs

  • Help me compare the Health Savings Account and Flexible Spending Account

    All active, benefits-eligible employees enrolled in Basic Health are able to have a Health Savings Account (HSA). Funds in your HSA can be used for eligible health care, dental, and vision expenses. Funds in these accounts roll over each year and are yours to keep for future health care costs.

    If you are enrolled in a Health Savings Account, you are not eligible for a Full Healthcare Flexible Spending Account, but you can enroll in a Limited and/or Dependent Daycare Flexible Spending Account to maximize your savings.

    A Flexible Spending Account (FSA), makes it possible for you to pay for certain expenses on a pre-tax basis, which makes your money go farther.

    Here are resources to help you learn more:

  • Can I Enroll in an FSA with Basic Health?

    Basic Health participants may have a limited FSA for eligible dental and vision expenses. For medical services and prescription costs, you must use HSA funds. Basic Health participants may not have a full health care FSA. 

    For FSAs, the full contribution amount you choose for the year is available as soon as the account is open. For example, if you choose to put $500 in a limited health care FSA for the year, you would be able to use that full $500 for eligible dental and vision expenses after the first paycheck of the year. Payroll deductions for the FSA would continue through the remainder of the year.

    Limited FSA 

  • Do I need to re-enroll in my FSA during Open Enrollment or will it carry over?

    2020 elections for FSAs and HSAs will NOT carry over to 2021. You must re-elect the FSA and HSA programs for 2021 during Open Enrollment. 

  • What is the grace period with FSAs? And what expenses can be submitted during this period?

    A grace period provides you with an extra 2 1/2 months to spend last year's money. UVA offers a brief grace period into the following year, so you will have until March 15th to incur expenses. The deadline to submit claims is April 30th. 

    Full Flexible Spending Account (FSA), Limited Flexible Spending Account (FSA) and Dependent Daycare Reimbursement Account (DCA) do have grace periods to spend the money beyond year's end if you are enrolled in the FSA or DCA program on December 31st of the plan year. 

    The expenses must be used for eligible services and the expense must be incurred during the calendar year for which the account was opened or during the 2 1/2 month grace period from January 1st to March 15th of the following calendar year. The grace period is designed to give you an opportunity to incur expenses and use all the funds in your account if you contributed more than was actually needed for the calendar year. 

     

    If you are switching from Value Health or Choice Health to Basic Health and you have an FSA, then you will be closing your FSA. You will need to have a balance of $0.00 in your FSA by January 1, 2021 to open your HSA. Otherwise:

    • Your HSA cannot be opened, and you will not be able to make employee contributions until April 1, 2021
    • Deposited funds will become available for use on the third bank day after payday
    • You will not be able to use money in your account to cover any expenses incurred prior to April 1, 2021

    Understanding the UVA Benefit Savings Accounts

Having trouble finding what you’re looking for?

We strive to make the information on every webpage clear and easy to find. Please let the HR Communications team know if you're having trouble finding what you're looking for, so we can improve your experience on this page in the future. 

For non-website questions or concerns about benefits and Open Enrollment, please contact the HR Solution Center by phone at 434.243.3344, or by email at AskHR@virginia.edu.

For previous Open Enrollment email communications, visit the Open Enrollment Communications Archive webpage.