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 $3,050 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.

Transit/Commuting

Employees are allowed to use up to $300 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.

Parking

The Parking plan allows up to $300 pre-tax dollars per month towards workplace or commuter parking expenses. This benefit is available to all employees regardless of status.

 How pre-tax flexible spending plans work

• Enroll in the desired FSA plan(s) through My Payroll and Benefits. Select the payroll deduction amount (e.g. $300 transit per month is $150 per payroll deduction)
• Transit or Parking Plans: Purchase a parking or transit commuter pass as an out-of-pocket expense.
• Health Care or Dependent Care Plans: Obtain receipts for medical or dependent care out-of-pocket expenses.
• Submit receipt(s) along with the ABS Reimbursement Request form by email rfcunyclaims@abs125.com, fax to 860-673-2207, or upload online at www.abs125.com
• ABS will review, process the claims, and send the participant a confirmation email.
• Approved claims will be deposited in the participant’s payroll as a post-tax reimbursement thereby giving the participant a tax savings. See the Pre-Tax Savings Example under  Related Links in the lower left-hand side of this page

Claims and receipts are submitted to Advanced Benefits Strategies for reimbursement on a weekly, biweekly, monthly, quarterly, or annual basis. Receipts submitted for reimbursement must be from qualified expenses incurred within the plan year which reimbursement is being sought. Reimbursement must be submitted for that plan year by the deadline of March 31 of the following year (e.g., 2023 Plan year deadline is March 31, 2024). Reimbursements are posted through regular payroll.

Claims must be submitted to Advanced Benefit Strategy online or by fax. Online access to account balances is also available through the ABS website.

Flexible Spending Account Benefits Forms