Pre-Tax Flexible Spending Plans

Pre-tax flexible spending plans are pre-tax reimbursement benefit plans designed to save money and reimburse qualified out-of-pocket expenses that are not covered by insurance plans. RFCUNY offers four types of plans: Healthcare Reimbursement, Dependent Care, Transit/ Commuting, and Parking. The maximum allowable reimbursement may change based on IRS regulations. Contributions to the plan are tax-exempt (federal, state, social security, and Medicare). Advanced Benefits Strategies (ABS) administers the pre-tax savings plans for RFCUNY employees.

Employees should fully understand how the plan works prior to enrolling.

Annual re-enrollment is required. For Section 125 Plans (Healthcare and Dependent Care), unclaimed funds will be forfeited after the deadline. For Section 132 Plans (Transit and Parking), unclaimed funds will be rolled over into the new plan year if the employee re-enrolls.

Flexible Spending

With the Healthcare Reimbursement plan, the total dollar amount selected is evenly deducted from an employee’s paycheck throughout the plan year and deposited into the employee’s flexible benefit account. This plan allows a minimum annual election of $250 up to a maximum of $3,200 pre-tax dollars per year to pay for non-reimbursed medical and dental expenses for an employee and their eligible dependents (domestic partners not included). Reimbursement may be requested for co-payments, prescriptions, eyeglasses, deductibles, orthodontia, and co-insurance. This benefit is only available to Full-time and Part-time A employees with 90 days of service. Mid-year enrollment, terminations, or changes are not allowed for the Healthcare Plan.

Dependent Care

The Dependent Care plan allows a minimum annual election of $250 up to $5,000 pre-tax dollars per year to pay for the care of an employee’s dependent. Qualified expenses include childcare, eldercare, preschool, day camp, before/after school programs and nursing care. This benefit is available to all Full-time and Part-time A employees. Dependent Care applies to dependents up to age 13 or permanently disabled dependents. Under the IRS rules, the amount shall not exceed $5,000.00 during a taxable year, if married, your spouse works and you file joint return. If you are married and file a separate return, you may set aside only $2,500 each year.


Employees are allowed to use up to $315 pre-tax dollars per month towards transit/commuting expenses. This includes Metro Cards, LIRR, Path, Metro-North Railroad, NJ Transit, Rockland Coach, Ferries and Vanpool Services. This benefit is available to all employees.


The Parking plan allows up to $315 pre-tax dollars per month towards workplace or commuter parking expenses. This benefit is available to all employees regardless of status.

Other Considerations


Before we finalize your enrollment, it is important that you fully understand how these plans work. Flexible Spending Plans allow you to set aside money on a pre-tax basis to cover public transit or parking expenses used to commute to and from your work place, out of pocket medical costs, or dependent care expenses (for children up to age 13 or eldercare). For the Transit and Parking plans are based on a monthly election amount. A minimum $1.00 election must be made in order to remain enrolled in these plans. For the Healthcare or Dependent care plans, a minimum $250 annual election ($10.42 per deduction) is required to enroll. Deductions are automatically taken from your paycheck twice a month. Reimbursement is on a post-tax basis allowing for tax savings.


Do not overestimate your eligible expenses when enrolling in these plans. Enrollment and reimbursement will follow IRS rule. Transit, Parking, and Dependent Care plans allow for enrollment, changes, and cancellations at any time. The Healthcare plan is an annual enrollment which cannot be increased, decreased, or changed outside of initial eligibility, within 31 days of a qualifying life event, or during annual open enrollment.


RFCUNY Plans have a 2 ½ month grace period following the end of the plan year. A grace period extends the period of time in which you can use your FSA funds on eligible expenses, such as going to the doctor or purchasing prescriptions and FSA eligible over-the-counter medications. The deadlines for Plan Year 2024 are as follows:

  • Grace Period to Incur Claims: March 15, 2025
  • Deadline to Submit Claims: March 31, 2025

FSA Plans follow IRS rule. Claims submitted after the deadline will not be approved. Use It or Lose It.

Healthcare and Dependent care funds do not roll over and remaining plan balances will not be refunded. Unclaimed Transit and Parking funds will automatically roll over to the next plan year IF you re-enroll. If you have the debit card, it will continue to work as normal, using the funds remaining in your prior plan year first.



For the Transit, Parking, and Healthcare eligible expenses, you may use the FSA Debit Card provided by Advanced Benefit Strategies. See the attached Instructions for more information on How to Use the Debit Card. Dependent Care reimbursement is not available through Debit Card.



Save your Receipts! The IRS views certain expenses as automatically eligible, while others will require an itemized receipt. For example; vision centers and dental expenses (FSA). Duplicate expenses submitted via claim form for expenses already charged to the ABS Debit Card will not be reimbursed. ABS will review manual claims and reject claims submitted for the same dates of service which were previously charged to the ABS Debit Card.


There will be no payroll reimbursements. You can submit the reimbursement form by ABS Mobile App, through the ABS portal, via email at,  fax to 860-675-2260, or mail  to ABS at 30 Mill Street, Unionville, CT 06085. The reimbursement claim form may be accessed on the RFCUNY site under Employees > Explore & Enroll in Benefits > Pre-Tax Flexible Spending Plans. Employees who submit claims will be reimbursed directly by ABS via direct deposit set up through ABS or via manual check. If you need assistance submitting your claims, please contact


ABS Consumer Portal and Mobile App

The ABS mobile App provides you with a centralized view of:

  • Account balances, account activity, claim history and payment (reimbursement) history
  • Submit claims online to reimburse yourself or pay a provider – snap a photo of a receipt and submit with a new or existing claim.
  • Track your expenses, update personal profile information, and report a lost/stolen card to receive a new one
  • Sign up for Direct Deposit – Mobile App, Consumer Portal or paper form
  • Face enabled and contactless payments with Mobile Pay (mobile app)
  • Built in eligibility scanner and EOB Smart Scan (mobile app)
  • “Let's Chat" your AI-Virtual Account Manager is live on the ABS Consumer Portal to help with questions 24/7/365.

Essential Forms

Flexible Spending Account Benefits Forms

Return to top