How to Use Your FSA, HRA, and Commuter Benefits

Flexible Spending Account (FSA)

A FSA is a tax-advantaged financial account that can be set up through your employer's cafeteria plan. With a FSA, participants set aside funds on a pre-tax basis each year into their account and subsequently access those funds for qualifying healthcare expenses incurred within the plan year.

How to Contribute to Your FSA

A FSA is a tax-advantaged financial account that can be set up through your employer's cafeteria plan. With a FSA, you elect to have your annual contribution deducted from your paycheck each pay period, in equal installments throughout the year, until you reach the maximum you specified for the year. Your employer is also allowed to make contributions to your FSA, if desired, in order to offer a greater benefit to you.

Your employer sets your plan’s annual contribution maximum, which must be within the IRS Contribution Limits. View current IRS Contribution Limits. Please review your summary plan description for your plan’s limit.

Health Reimbursement Arrangement (HRA)

An HRA is a way for employers to help offset their employees’ healthcare expenses, while gaining tax advantages. Employer contributions that meet with IRS rules are tax deductible to the employer and tax-free to the employee.

Funding of Your HRA

A HRA is an employer-funded plan, so only your employer can contribute money to your account. To pay for a service or make a purchase, you need to have the available funds in your account. Your employer may allow you to roll over unused HRA funds from year-to-year, providing a potential incentive for you to be a better steward of your healthcare spending.

How to Pay for IRS-Qualified Medical Expenses With Your FSA or HRA

There are multiple ways to access funds to pay for IRS-qualified medical expenses that are eligible for reimbursement under your plan. For a list of IRS-qualified medical expenses, visit irs.gov or hsabank.com/IRSQualifiedExpenses.

NOTE: It is important to review your summary plan description for specific information regarding your plan’s eligible expenses.

HSA Bank Health Benefits Debit Card – If your plan provides a debit card, you may use your debit card at point of sale, or after you receive a medical bill from your provider. Transaction amounts are automatically deducted from your account balance.

Direct Pay to Provider – Submit your claim online and include your provider’s billing address. Once the claim is validated and substantiated, a check is sent to your provider to the address you specified on the claim.

Auto-Carrier Claim Feed – This gives you the option to pay automatically from your FSA or hold in an online repository for payment at a later date.

How to Reimburse Yourself for IRS-Qualified Medical Expenses With Your FSA or HRA

After you have paid for IRS-Qualified Medical Expenses out-of-pocket, there are multiple ways to reimburse yourself for those expenses.

Direct Deposit – Sign up for direct deposit on our Member Website by providing your bank routing and account number. Submit your claim and when the claim is validated and substantiated, a direct deposit is generated the following business day into your bank account.

Check – If you don’t sign up for direct deposit, you will receive a paper check in the mail. Submit your claim and when the claim is validated and substantiated, a check is mailed the following business day to the address you have on file with us.

Streaming or Auto-Rollover – You have two options, if your employer has selected integration with your health plan. Claims are automatically transmitted from your health plan to HSA Bank.

  1. The claim is automatically processed, and you are reimbursed directly from your consumer-directed health accounts based on employer plan stacking rules, consumer eligibility, and available account balances, or;
  2. Sent to your Expense Tracker, where you can choose whether to pay from your FSA or HRA. The Expense Tracker can be accessed from either the Member Website or the Mobile App for iOS and Android devices.

Commuter Benefits (Transit and Parking)

Commuter Benefits include Transit and Parking Accounts. These accounts enable you to pay for certain workplace transit and parking expenses on a tax-free basis through payroll deductions. Commuter Benefits are not tied to a benefit year, so the funds will remain in your account until exhausted. Election changes are not limited by a plan year and can be updated or stopped as your needs change.

* The IRS sets limits each year for maximum monthly benefits. View current IRS Limits.

Transit Account – A Transit Account enables you to set aside funds on a pre-tax basis to pay for eligible workplace mass transit expenses such as the price of tickets, vouchers, and passes to ride a subway, train, or city bus, or the costs of transportation in a commuter highway vehicle (e.g., vanpool), if such transportation is for purposes of travel between a residence and place of employment.

Parking Account – A Parking Account enables you to set aside funds on a tax-free basis to pay for eligible workspace parking expenses, parking costs at or near your primary work site as well as parking costs at the place to access transportation to work, such as a train station or vanpool stop. Parking on or near property used for residential purposes does not qualify.

How to Pay for IRS-Qualified Expenses With Your Commuter Benefits

Pay for IRS-Qualified Commuter Expenses.

HSA Bank Health Benefits Debit Card – Use your debit card at the point of sale for benefit providers such as parking garages and transit stations. Transaction amounts are automatically deducted from your account balance.

How to Reimburse Yourself for IRS-Qualified Medical Expenses With Your Commuter Benefits

After you have paid for IRS-Qualified Commuter Expenses out-of-pocket, there are multiple ways to reimburse yourself for those expenses.

Direct Deposit – Sign up for direct deposit on our Member Website by providing your bank routing and account number. Submit your claim and when the claim is validated and substantiated, a direct deposit is generated the following business day into your bank account.

Check – If you don’t sign up for direct deposit, you will receive a paper check in the mail. Submit your claim and when the claim is validated and substantiated, a check is mailed the following business day to the address you have on file with us.