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Taking Advantage of
Your Employee Reimbursement Account

Employee Reimbursement Accounts are actually tax advantage programs. These pre-tax plans which can be adopted by your employer are designed to save you money on healthcare, child care and even commuting expenses. Because the funds in these accounts are pulled from your paycheck pre-tax, they lower your taxable income. That's the first advantage, depending on which accounts your employer adopts the benefits stack up from there.

Flexible Spending Account (FSA)

Health FSA: With this account, you set aside the amount of money (up to the plan maximum) that you think you and your dependents will spend on qualified health expenses for the plan year. This amount will typically be taken from your paycheck each pay period in even increments over the plan year. The full election will be available to you day one of the plan year. However, if you do not use those funds, they will be forfeited.
Dependent Care FSA: This account allows a household to set aside up to $5,000 pre-tax for day care expenses. In order to be eligible for this account, the expense for care must be so that you (and your spouse if you are married) can work. The dependent must be claimed on your taxes and under 13 or incapable of self-care. These funds are also forfeited at the end of the year if they are not used.

Health Reimbursement Account (HRA)

An HRA is an employer funded account that provides funds to offset healthcare expenses. These plans are unique for each employer, but in each case, the employer provides the funds. Employees cannot contribute to an HRA.

Health Savings Account (HSA)

These accounts can only be paired with a Qualified High Deductible Health Plan. They can be used to pay for qualifying healthcare expenses. You can contribute to your HSA and so can your employer. There is no "use it or lose it" condition on an HSA. There is a federal maximum that you can contribute each year. With a csONE.com HSA, you can even invest funds over $2,000 in mutual funds. The HSA is portable, so you can take it with you if you leave employment. After age 65, you can use HSA funds for non-qualifying expenses.

Qualified Transportation Accounts (QTA)

QTAs, also known as Commuter Benefits may be setup by your employer to allow you to use pre-tax funds for expenses related to your commute to work governed by IRS Section 132. The funds can be used for transit provided by a train, bus, subway, ferry or vanpool. They can also be used for parking if you need to pay for parking to get to work.