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FLEXIBLE SPENDING ACCOUNT (FSA) SOURCEBOOK 20222023 PLAN YEAR Commonwealth of Virginia 10110000101 (03/22)CONTENTSKnow What's Inside FLEXIBLE SPENDING ACCOUNT (FSA) OVERVIEW45 Sign Up and Save with
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Anyone who is looking to save tax money and wants to cover eligible medical expenses can benefit from flexible spending accounts. It is especially useful for individuals and families with predictable medical expenses such as doctor visits, prescription drugs, and other healthcare services. Flexible spending accounts provide a way to set aside pre-tax dollars for these expenses, reducing your taxable income and saving you money in taxes.
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A flexible spending account (FSA) is a tax-advantaged financial account that allows employees to set aside a portion of their earnings to pay for qualified expenses, such as medical costs or dependent care.
Employees who wish to participate in a flexible spending account program offered by their employer are required to file.
To fill out a flexible spending account, employees must enroll during their employer's open enrollment period and indicate the amount they wish to contribute for the year.
The purpose of a flexible spending account is to help employees save money on qualified expenses by allowing them to use pre-tax dollars.
Employees must report their contribution amount, eligible expenses, and any reimbursements received from the FSA.
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