2026 Flexible Spending Accounts
If you enroll in the HealthKeepers HDHP with HSA plan, you cannot enroll in the Health Care FSA.
Flexible Spending Accounts (FSAs) allow you to contribute pre-tax dollars that you expect to spend on qualified expenses into the account and therefore lower your taxable income. There are two types of FSAs offered: Health Care FSA and Dependent Care FSA.
Health Care FSA
Flexible Spending Account for out-of-pocket health care expenses.
When considering the Health Care account, estimate costs for co-payments of prescription drugs and doctors visits for yourself and your family members. You don’t have to participate in Henrico County health care or dental coverage to participate in a FSA and your family members do not have to be covered by Henrico County’s plans for you to be reimbursed for their eligible expenses.
$3,300 for Health Care FSA
- This annual limit does not include your rollover amount.
- Up to $660 of unspent funds will carry over into 2027.
- The minimum annual election is $100.
Healthcare FSA Rollover: Up to $640 of unspent funds will carry over into 2026. These funds will not be made available in your account until after the grace period has ended. The grace period is 90-days from the end of the plan year to allow for individuals to file reimbursement claims for their 2025 expenses. The last day to submit claims for 2025 is March 31, 2026. Any amount in your account over the allotted $640, you will lose and will not have access to those funds in 2026.
Note: There has been a recent change to the Flexible Spending Account (FSA) verification requirements. In prior years, due to the easing of regulations by the IRS related to COVID-19, participants have been able to use their health care FSA balances without needing to provide documentation for certain transactions.
However, the IRS is now returning to the pre-COVID regulations, and substantiation is mandatory for all FSA transactions. While this has always been the case, advancements in technology have allowed FSA Administrators such as TASC to automatically verify certain transactions, such as copayments and prescriptions from approved merchants like CVS and Walgreens.
Moving forward, FSA card swipes for transactions outside of what can be auto substantiated, a participant may receive an email requesting documentation to verify the eligibility of the expense.
Important: Debit card transactions will still process and fund as they have in the past. This change will also not result in the debit card being deactivated or other manual claims from being reimbursed. Participants will simply need to provide verification documentation, such as an itemized receipt or an explanation of benefits, when requested to do so.
In addition, these changes have been implemented in response to an increase in fraudulent debit card activities within the financial and healthcare sectors. TASC is working on updating the notification email language that participants receive when asked to provide additional verification, as many clients have provided feedback that the current messaging has caused confusion amongst participants.
If you have questions about the verification requirements or the types of documentation accepted under IRS guidelines, please contact TASC 1-800-422-4661.
Dependent Care (Daycare) FSA
Flexible Spending Account for costs of adult or child care that enable you (and your spouse) to work.
When considering the Dependent Care account, review costs for child care services for dependent children under the age of 13. This account may also be used if you have expenses for adult care services. Eligible child or adult care expenses are those that you incur when you are working and that enable you (and your spouse) to work.
The TASC Dependent Care FSA allows you to use pretax dollars to pay for eligible expenses related to care for your child, disabled spouse, elderly parent, or other dependent who is physically or mentally incapable of self-care, so you (or your spouse) can work, look for work, or attend school full time. Medical expenses for your dependent are not eligible for reimbursement under the TASC Dependent Care FSA.
The dependent care expenses must be work-related. The care must be necessary for the employee and/or the employee’s spouse to work, to look for work, or to attend school full-time, or if they are physically unable to care for their children.
Dependent care expenses must be for the care of one or more qualifying persons which is defined as one of the following:
- A dependent child who was under age 13 when care was provided and for whom a tax exemption can be claimed.
- A spouse who was physically or mentally not able to care for him/herself and lived with you for more than half the
year. - A dependent who was physically or mentally not able to care for him/herself and for whom an exemption can be
claimed, and lived with you for more than half the year.
$7,500 for Dependent Care (Day Care) FSA per household or $3,750 per individual if married and filing taxes separately.
Dependent Care FSAs do not allow carryovers. If you have any money left in your account, you’ll lose it at the end of the benefit plan year. Unlike a Healthcare Flexible Spending Account, where the annual election is available on the first day of the year, a Dependent Care Flexible Spending Account is a money-in/money-out account. In other words, the money is not available until it has been deposited into your account with the vendor.
