A Health Reimbursement Arrangement (HRA) is an account funded solely by an employer to help employees pay for health care expenses on a tax-free basis. The employer sets the parameters for the Health Reimbursement Accounts is to be used and unused dollars remain with the employer. A tremendous amount of originality is available to the employer when designing these plans.

A Flexible Spending Account (FSA) allows an employee to set aside a portion of earnings to pay for qualified expenses on a pre-tax basis for themselves, their spouse and any tax dependents. The full annual amount of funding is available at the beginning of the plan year. Employers may also choose to contribute to the FSA under certain parameters.

A Dependent Care Account (DCA) allows you to be reimbursed a maximum of $5000 on a pre-tax basis for child care or adult dependent care expenses for qualified dependents that are necessary to allow you or your spouse to work, look for work, or attend school full-time.

A Health Savings Account (HSA) allows individuals covered by high deductible health plans (HDHP) to save for qualified medical expenses on a pre-tax basis for themselves, their spouse, and any tax dependents.

Commuter plans allow employees who take public transportation, pay for parking or ride a bicycle to work, a tax-free benefit. Lower your companies payroll taxes while employees take home extra money each month. Below is an overview of the commuter plans allowed by IRS Section 132(f).