Through FlexSolutions, A&B offers two special, voluntary accounts that can help you plan for certain health care and/or dependent care expenses, while at the same time possibly reduce your income taxes: the...
Specifically, the...
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HCRA
helps you pay for eligible health care expenses you incur on behalf of yourself or your eligible dependents (as defined by the IRS).
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DCRA
helps you pay for the child or elder day care expenses you incur on behalf of an eligible dependent (as defined by the IRS) in order for you (or you and your spouse) to work or look for work.
The Reimbursement Accounts are individual accounts that reimburse you for the covered expenses outlined here. Normally you would pay these expenses out of your take-home pay after taxes have been deducted.
With the Reimbursement Accounts, however, you can reduce part of your pay before paying taxes, up to a maximum amount, and deposit this money into your account. You may also contribute any remaining pre-tax FS Credits to the Reimbursement Accounts. Then, when you (or your dependents) have an eligible expense, you may receive a tax-free reimbursement from the appropriate Account.
So, Reimbursement Accounts can help you two ways...
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First, they provide a convenient way to budget for certain health care and dependent care expenses; and
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Second, they can help reduce the taxes you pay!
This section provides detailed information about the Reimbursement Accounts. We also encourage you to refer to Benefit Basics for additional information pertaining to eligibility, effective dates, enrolling, coverage costs and changing your elections.
Please note that expenses for domestic partners and their children may not be eligible for reimbursement under the Reimbursement Accounts, unless they are tax dependents under IRS rules. As with other tax-related matters, you should consult a tax professional to learn what will work for your situation.
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