How to Use Your FSA, HRA and Commuter Benefits
A Flexible Spending Account (FSA) is a tax-advantaged financial account that can be set up through your employer's cafeteria plan. With an FSA, participants set aside funds on a pre-tax basis each year into their account and then access those funds for qualifying healthcare expenses incurred within the plan year.
How to contribute to your FSA
With an FSA, your annual contribution is deducted from your paycheck each pay period, in equal installments throughout the year, until you reach your specified maximum. Your employer can also make contributions to your FSA, if they want to offer a greater benefit to you.
Your employer sets your plan annual contribution maximum, which must be within the IRS contribution limits. Please review your summary plan description for your plan limit.
A Health Reimbursement Arrangement (HRA) is a way for your employer to help offset your healthcare expenses.
Funding of your HRA
An 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 let you roll over unused HRA funds from year to year, to incentivize you to stay more aware 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 eligible for reimbursement under your plan. Visit irs.gov or hsabank.com/QME for a list of IRS-qualified medical expenses.
NOTE: It’s important to review your summary plan description for specific information regarding your plan-eligible expenses.
HSA Bank Health Benefits Debit Card – If you get a debit card with your plan, you may use it at point of sale or after you get a medical bill from your provider. Transaction amounts automatically deduct from your account balance.
How to reimburse yourself for IRS-qualified medical expenses with your FSA or HRA
After you 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. Provide your bank routing and account numbers. Submit your claim, and when the claim is validated and substantiated, a direct deposit generates the following business day into your bank account.
Commuter Benefits include Transit and Parking Accounts. These accounts let you to pay for certain workplace transit and parking expenses on a tax-free basis through payroll deductions. Commuter Benefits aren’t tied to a benefit year, so the funds remain in your account until spent. Election changes aren’t limited by a plan year, so you can update or stop them as your needs change.
The IRS sets limits each year for maximum monthly benefits. View current IRS limits.
Transit Account – A Transit Account lets you to set aside funds on a pre-tax basis to pay for eligible workplace mass transit expenses. These include 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 you need it for travel between your home and work.
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 like parking garages and transit stations. Transaction amounts automatically deduct from your account balance.
How to reimburse yourself for IRS-qualified expenses with your Commuter Parking Benefits
After you paid for IRS-qualified commuter parking expenses out of pocket, there are multiple ways to reimburse yourself for those expenses.
Direct deposit – Sign up for direct deposit on the Member Website. Provide your bank routing and account numbers. Submit your claim, and when the claim is validated and substantiated, a direct deposit generates the following business day into your bank account.