Health Care Spending Account. You can contribute between $240 and $8,000 a year on a before-tax basis to pay for eligible, out-of-pocket health care expenses.
Child/Elder Care Spending Account. You generally can contribute between $240 and $5,000 a year on a before-tax basis, subject to certain limits required under the Internal Revenue Code (IRC) with respect to before-tax contributions for highly compensated employees.
Transportation Spending Accounts. The Transportation Spending Accounts include a Transit Account and a Parking Account. You can participate in either or both accounts, and you can contribute on a before-tax basis to either account. (If your commuter/parking costs exceed the legal before-tax monthly limits under the Transportation Spending Accounts, those additional costs will automatically be deducted through payroll deductions on an after-tax basis.)
Transit Account. You can contribute up to $115 a month on a before-tax basis for eligible mass transit passes (for example, commuter bus, train, subway, ferry passes, tickets, and vouchers) or vanpooling expenses.
Parking Account. You can contribute up to $220 a month on a before-tax basis for eligible parking expenses if you drive directly to work or to a location from which you commute to work (for example, park and ride).
The maximum before-tax contribution amounts shown here are legal limits on the maximum eligible commuting expense that may be incurred on a monthly basis for the calendar year 2008. The limits may change periodically subject to Internal Revenue Service (IRS) regulations.
Special Rules
Health Care Spending Account. Internal Revenue Service rules provide that any balance remaining in your Health Care Spending Account at the end of the plan year (January 1 - December 31) may be used to reimburse yourself for expenses incurred during the first two and a half months of the following year (until March 15). After the grace period (January 1 through March 15 of the following year), you will lose any remaining balance in your account. You have until April 30 to submit eligible claims for reimbursement.
Child/Elder Care Spending Account. For the Child/Elder Care Spending Account, you must provide the taxpayer identification number or Social Security number of any day care provider that you may use for an eligible dependent.
Transportation Spending Accounts. While the Transportation Spending Accounts are similar in many ways to the Health Care Spending Account and the Child/Elder Care Spending Account, these accounts are subject to different rules under the Internal Revenue Code (IRC). The Transportation Spending Accounts are more flexible than the other Spending Accounts in several ways, including:
You can choose to make before-tax and after-tax payroll deductions to pay for your eligible monthly commuter pass/ticket, and/or parking expenses; and
You can enroll in the Transportation Spending Accounts, change, or cancel your contribution rate at any time during the year on a monthly basis. You must make these elections by the first of the month prior to the month you wish to participate or change your election.
