Tax-Free Reimbursement Accounts
The Internal Revenue Service (IRS) allows employers to set up accounts for employees to set aside money on a pre-tax basis to be used for eligible expenses. Every year you can decide how much you wish to contribute to each tax-free reimbursement account, and the amount will be deducted from your paycheck on a pre-tax basis. The money set aside is used to reimburse you for eligible expenses and you are not taxed on the reimbursement. The IRS places important restrictions on these accounts in return for their tax advantages, so you must plan carefully to avoid forfeiture of unused monies.
- Healthcare Reimbursement Account (HCRA)
You may contribute up to $2,500 annually in pre-tax dollars towards medical, dental and drug expenses not covered under your health insurance.
- Dependent Care Reimbursement Account (DCRA)
You may contribute up to $5,000 in pre-tax dollars annually per household towards care of eligible dependents.
- Transportation Reimbursement Incentive Program (TRIP)
You may contribute pre-tax dollars towards the cost of qualified transportation (mass transit, carpooling, and parking) expenses to and from work.
Note: All benefits and programs are subject to change from time to time in accordance with institutional policy. A full policy description is available on the intranet.