Choice Benefits

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• Individual Coverage HRA (ICHRA): Employer-funded arrangement to reimburse employees’ premiums and out-of-pocket costs for individual (nongroup) health plans. Funds are tax-free to employees. Employers set contribution limits per class of employees. Employees must maintain qualifying individual coverage.
   
• Excepted Benefit HRA (EBHRA): A limited-dollar HRA for “excepted” benefits. Employers of any size can reimburse employees tax-free for dental, vision, COBRA, and other minor medical expenses and premiums not covered by the main health plan. Unlike other HRAs, EBHRA is exempt from most Affordable Care Act mandates. It has an annual cap (about $1,950 in 2024).
   
• Qualified Small Employer HRA (QSEHRA): For small employers (<50 full-time workers) without a group plan. Employers reimburse employees' qualified medical expenses (premiums, copays, etc.) tax-free up to set limits (e.g., ~$6,000 for a family in 2024). Employees must have minimum essential coverage (ACA) to receive tax-free reimbursements. Employers not subject to large-employer mandate (<50 FTE) may use QSEHRA.
   
• Flexible Spending Account (FSA) – Healthcare FSA: A pre-tax account funded by salary reduction to cover eligible medical, dental, and vision costs (copays, deductibles, prescriptions Contributions (up to ~$3,050 in 2024) reduce taxable income. Generally, must be used by year-end or forfeited (some plans allow a negligible carryover or grace period). Not compatible with HSA.
   
• Limited Purpose FSA (LPFSA): Like a Healthcare FSA but limited to dental and vision expenses. Because it excludes general medical costs, employees can contribute to an LPFSA while funding an HSA (which prohibits a general medical FSA). LPFSA contributions are pre-tax, with similar use-it-or-lose-it rules.
   
• Health Savings Account (HSA): A tax-advantaged savings account for medical expenses. Employees and/or employers contribute (pre-tax or tax-deductible) up to IRS limits (e.g. ~$4,150 individual in 2024) into an HSA if enrolled in a high-deductible health plan (HDHP). Funds grow tax-free and roll over year-to-year. Distributions are tax-free for qualified medical expenses. Unused balances belong to the employee indefinitely. Contributions and distributions require HDHP eligibility and no other disqualifying coverage.
   
• Health Reimbursement Arrangement (HRA – general): An employer-funded, tax-advantaged account to reimburse employees for approved medical, dental, and vision expenses. The employer decides which expenses are covered (commonly deductibles, coinsurance). Reimbursements are tax-free; unused funds generally stay with the employer. Unlike FSAs, HRAs have no IRS dollar limit (employer sets funding). HRAs are not portable if the employee leaves unless the employer provides post-termination benefits.
   
• Medicare HRA: A specialized HRA for retirees on Medicare. Employers reimburse Medicare Part B and/or D premiums (and sometimes Medigap premiums) on a pre-tax basis, helping offset retirees' premium costs. This is considered an excepted benefit (not part of a group plan) and is offered by employers to eligible retired workers.
   
• Integrated Funded HRA (IFHRA): HRA is available only to employees enrolled in the employer's group plan. It "integrates” with the plan by reimbursing out-of-pocket costs (deductibles, coinsurance, etc.) that the plan does not pay. Fully employer-funded and tax-free, IFHRA offsets high-deductible exposure for covered employees. Employers design the covered expenses and contribution level.
   
• Spousal Incentive HRA: An employer-sponsored HRA to encourage an employee (and spouse) to use the spouse's group health plan. The employer reimburses the employee's eligible medical/dental/vision expenses (pre-tax) if the employee declines the employer's plan and enrolls in the spouse's employer plan. This offers additional funds to opt-out employees to cover their out-of-pocket costs, reducing the employer's health plan cost.
   
• Retiree Funded HRA (Retiree FHRA): An HRA for retired employees. Retirees contribute (or have contributions deducted) into the account to pay for medical/dental/vision expenses in retirement. This is tax-advantaged (the employer sets it up as a Section 105 plan), so reimbursements for qualified health expenses are tax-free. It’s essentially an IRS-sanctioned way for retirees to save tax-free healthcare costs in retirement.
   
• Emergency Expense HRA: An HRA designed for public health emergencies (e.g. pandemics). Employers reimburse employees, tax-free, for all 213(d) medical expenses incurred due to a declared emergency (COVID-19 was an example). This helps cover unforeseen health costs (even preserving HSA eligibility if structured as an LP-HRA).
   
• Wellness Reimbursement Arrangement: An employer-funded account to reimburse employees for wellness-related expenses. Examples include gym/fitness memberships, weight-loss programs, or smoking cessation courses. Employers define eligible wellness expenses; reimbursements are typically tax-free. This encourages healthy behaviors by offsetting out-of-pocket wellness costs.
   
• Healthcare Premium Reimbursement Arrangement (NESP): A Premium Reimbursement Account or Premium-Only Plan. Employees can use pre-tax payroll deductions (through this account) to pay their share of health, dental, or vision insurance premiums. It allows insurance premiums to be paid with pre-tax dollars, reducing taxable income. (Often implemented via a Section 125 Premium Only Plan; “NESP” stands for Non-Employee Salary Premium or similar.) This is tax-advantaged because employee contributions to premiums are made pre-tax

• Dependent Care FSA: A pre-tax account for child or elder care expenses. Employees contribute (pre-tax) to cover eligible daycare costs for children under 13 or adult dependents (e.g. nursery school, summer camps, elder daycare). Contributions up to $5,000 per year ($2,500 if married filing separately) are allowed (2024 limit). Reimbursements must be for work-related care expenses so the employee (and spouse) can work or look for work.
   
• Back-up Care Reimbursement Account: An employer-funded account to cover temporary care for dependents when regular care is unavailable. For example, suppose a child's daycare is closed or an adult caregiver is suddenly unavailable. In that case, employees can use this account to reimburse costs of substitute care (backup childcare or adult care). This fringe account offers flexibility beyond a Dependent Care FSA, often without strict IRS limits on reimbursements, and provides peace of mind during unexpected care needs.
   
• Child Adoption Assistance Account: An employer-sponsored program to reimburse qualified adoption expenses. Employers can reimburse (often up to the IRS exclusion amount) costs related to adopting a child – such as adoption fees, legal and attorney fees, court costs, travel, and other related expenses. Under IRS rules, up to $17,280 (2024) of adoption assistance can be excluded from an employee's income. The account is typically tax-advantaged (employer contributions and reimbursements are tax-free up to the limit), encouraging adoption by offsetting its costs.
   
• Fertility Assistance Account: An employer-funded account reimburses employees for fertility-related medical expenses. It covers costs like IVF or IUI treatments, fertility medications, and related services not fully covered by insurance. Funds are tax-advantaged since the account is employer-funded (an HRA), so reimbursements are tax-free to employee bene-care.com. This benefit targets employees undergoing fertility or family-building treatments and supplements standard health coverage.

• Lifestyle Reimbursement Account: A flexible, employer-funded account to reimburse various lifestyle and well-being expenses. Examples include wellness activities, fitness classes, financial planning, or educational courses. Employers define eligible categories aligned with company goals. Reimbursements (not necessarily tax-advantaged) provide funds for personal well-being and can boost engagement by showing investment in employees' overall lifestyle.
   
• Pet Care Reimbursement Account: An employer-funded fringe benefit reimburses employees for pet-related expenses. Employers may allow reimbursements for items such as veterinary bills, pet medications, or pet daycare fees. The employer tailors the benefit; reimbursements are typically taxable (unless structured under qualifying FSA rules, which is uncommon). It’s aimed at pet owners, giving financial help with the rising cost of pet care.
   
• Wellness Rewards Account: A plan that rewards employees with cash or gift incentives for meeting health or wellness goals. For example, an employee might earn a $100 reward (paid through the account) for completing a health screening or participating in a fitness challenge. Funds come from the employer; rewards are typically taxable to the employee. This differs from a reimbursement account by giving a flat reward upon achievement of preset wellness objectives.
   
• Medical Travel Account: A 100% employer-funded account to reimburse travel-related costs for medical care. When employees must travel for necessary medical treatments (e.g. specialist procedures far from home), this account covers expenses like airfare, mileage, lodging, meals, and even childcare during travel. It is tax-advantaged (funded by the employer, reimbursing eligible costs), helping employees access needed medical services.
   
• Commuter Parking Account: A Section 132 pre-tax commuter benefit. Employees set aside pre-tax dollars to pay for qualified parking expenses (e.g. workplace parking lots or garages). Contributions reduce taxable income up to IRS monthly limits. The funds can be used via a benefits card or reimbursements. This is geared to employees who drive to work.
   
• Transit Account: A Section 132 pretax account for mass transit. Employees allocate pre-tax payroll to buy transit passes, tokens, or tickets for buses, subways, trains, etc.. Contributions (up to monthly IRS limits) save 15–40% compared to post-tax. Employees swipe a commuter benefits card or submit receipts for transit commute expenses.
   
• Bike Account: Employer-funded account to reimburse bicycle commuting expenses. Employers decide on eligible items (often purchasing a bicycle, helmet, lock, and maintenance for commuting to work). Reimbursements are tax-deductible to the employer and tax-free to the employee. This promotes health and reduces carbon footprint.
   
• Gas Plus Account: An employer-funded account for fuel and public transportation costs. It reimburses gasoline and transit expenses incurred commuting (e.g. filling up at the gas pump, public bus fares). Unlike the pre-tax parking/transit accounts, Gas Plus is generally a taxable benefit (the employer funds the account after tax and can deduct it as a business expense). It is 100% employer-funded and flexible to cover varying commute costs.
   
• Emergency Expense Reimbursement Account: An employer-funded fringe account to cover unforeseen personal emergencies. For example, during a natural disaster or health crisis, this account reimburses employees for extra costs not covered by insurance (medical testing, temporary housing, dependent care, etc.). Employers set eligibility criteria and may choose to make reimbursements taxable or tax-free. Unlike a dedicated HRA, this account often allows broader eligibility and urgent relief for employees in crisis situations.
   
• Employee Achievement/Award Account: An account for recognizing employees with awards. Employers can reimburse or provide gift cards for service milestones, safety achievements, or performance awards. Under IRS rules, qualifying achievement awards (tangible gifts for performance or longevity) can be tax-free up to modest limits (e.g. up to $400 per employee per year for non–cash awards). This account formalizes those rewards. Employers determine eligibility (e.g. 5-year service, annual performance) and reimburse the costs. (Non-cash awards meeting IRS criteria are not taxable to the employee).

• Tuition Reimbursement Account: An employer-sponsored educational assistance plan. The employer reimburses tuition, fees, and related education costs for courses or degree programs up to $5,250 per employee per year tax-free. Amounts above $5,250 must be reported as taxable income. Eligible expenses include tuition, books, supplies, and sometimes student feesirs.gov. Typically restricted to courses related to current job or skill development. This benefit is common for employees pursuing undergrad or graduate studies.
   
• Student Loan Reimbursement Account: A program to repay employees' qualified student loan debt. Under a Section 127 plan (education assistance), employers can pay up to $5,250 per year of an employee's student loan principal and interest tax-free (available through 2025 under current law). Payments can be made directly to lenders or employees. This benefit applies only to federal-qualifying education loans for the employee or spouse/dependentsirs.gov. It shares the same annual $5,250 exclusion limit as tuition reimbursement.

• Professional Business Expense Account: A tax-advantaged account for work-related professional expenses. Employers reimburse employees for business costs like professional dues, licensing fees, trade publications, continuing education courses, or industry certifications. Reimbursements are tax-free to the employee and tax-deductible to the employer. The employer defines Eligibility and covered expenses, promoting professional development and career growth.
   
• Home Office Account: A tax-advantaged reimbursement plan for remote work expenses. Applicable to employees working from home (full- or part-time), the employer reimburses home office costs such as a portion of internet service, computer hardware, printers, or office supplies. These reimbursements are treated as business expense reimbursements (not income) if the home office is used regularly and exclusively for work. This ensures remote employees have the necessary tools tax-free.
   
• Travel and Business Meals Account: An employer-funded account to reimburse employees for business travel and meal expenses. When employees travel for work or entertain clients, the employer uses this account to reimburse costs like airfare, lodging, taxis, and business meals. Reimbursements are tax-free (under accountable plan rules) because they are for business purposes. Employers control who is eligible and what expenses are covered. This simplifies expense management and avoids filing extra payroll.
   
• Work Clothes Account: A tax-advantaged account for work attire. Employers reimburse employees for clothing required exclusively for their job (e.g. uniforms, safety gear, protective uniforms). Expenses not adaptable to everyday wear (uniform shirts, steel-toe boots, lab coats, etc.) qualify. Reimbursements are non-taxable to the employee. This helps offset costs for jobs where special attire or protective clothing is mandatory.
   
• Workplace Tools Account: An employer-funded, tax-advantaged plan to reimburse tools required for work. For employees who must use their tools (e.g. a mechanic's wrenches or a hairdresser's scissors), employers reimburse purchases of these tools. The account covers small “work tools” items; funds cannot be withdrawn for other uses. Reimbursements are tax-free and fully deductible to the employer.
   
• Office Supplies Expense Reimbursement Account: A tax-advantaged account to cover necessary office equipment and supplies. Employers reimburse employees for computers, printers, stationery, paper, ink, or telephones required for work. Such reimbursements are treated as business expenses (not income to the employee). This ensures employees have needed office supplies without bearing unreimbursed costs.

• Employer Crisis Fund Account: An employer-funded account to help employees in emergencies. The employer pre-funds a general “crisis account,” and when an employee faces a personal/financial emergency (natural disaster, medical hardship, etc.), grants are moved from this account into the employee's individual crisis fund. Employers set eligibility criteria for grants. The funds can be designated as taxable or tax-advantaged (qualified disaster relief under IRC §139). This creates a formal safety net for employees.
   
• Employer Philanthropy Fund Account: An account for company-directed charitable giving. The employer allocates funds to donate to community or non-profit causes (often matching employee donations or supporting designated charities). Employees might help select beneficiaries. Contributions by the employer are typically tax-deductible (as charitable contributions) and not taxable income to recipients. This account allows the employer to engage in structured philanthropy and encourage corporate social responsibility. (Unlike an Individual Giving Account, the emphasis is on employer-directed giving.).

• Giving Savings Account: An account for charitable savings. Employees can set aside post-tax dollars (via payroll deduction) to donate to their favorite 501(c)(3) charities. Employers may match contributions to encourage giving. Funds remain employee-owned and can earn interest. Although intended for giving, until donated, they are unrestricted; employees can withdraw them for emergencies if needed. When funds are donated to charity, they are tax-deductible; employers' contributions are also deductible.
   
• Emergency Savings Account: A bank deposit account for unexpected expensest. Often, an HSA Bank “ESA” product or similar lets employees save post-tax dollars automatically from payroll to build an emergency cushion. There are no ERISA rules or plan year limits, and all employees (even part-time) can participate. Employers may optionally contribute or incentivize (up to 3% of pay under SECURE 2.0). Withdrawals are unrestricted (any personal emergency). Contributions are post-tax (non-ERISA), and funds grow like a regular savings account.
   
• Commission Account: A convenient account to pay sales commissions. Instead of issuing separate checks, employers fund commissions into the employee's account and issue a benefits card or transfer funds. Employees get immediate access to commission earnings without payroll lag. For example, each month, the employer loads that employee's earned commission into the account; the employee then uses the card for expenses or withdraws cash. This simplifies administering variable pay. (Funds are generally taxable wages to the employee.)
   
• Holiday Club Account: A savings account (often funded by payroll deductions) for seasonal or special-event expenses. Employees and/or employers contribute to this account throughout the year. In mid-December (for example), the balance is released to the employee to cover holiday costs, year-end bonuses, vacations, or other planned significant expenses. There are no IRS limits on contributions. It's a forced-savings tool to help employees manage irregular expenses. (Employee contributions are post-tax; employer contributions can be taxable or structured as a benefit.)