When you enroll in a pre-tax benefit, you select the total amount you wish to set aside from your paycheck to contribute to the account.
How the funds are deposited depends on the type of account: Some benefits are fully funded at once (front-loaded), while others receive incremental contributions from each paycheck throughout the year (payroll funded).
Fully funded / Front-loaded benefits
- Health care FSA (FSA)
- Limited purpose FSA (LPFSA)
For these benefits, your total annual election is immediately available on the effective date. Throughout the plan year you will see regular pre-tax payroll deductions for LPFSA or FSA, but the balance on Forma will only change as you spend. You can’t add more money into the account unless you have a qualifying life event (QLE) that allows you to change your election amount mid-year.
Incrementally funded / Payroll-funded accounts
- Dependent Care FSA (DCFSA)
- Health Savings Account (HSA)
- Parking
- Transit
These benefits start with a $0 balance on the effective date, and a set amount is deposited into them each pay period. The contribution amount is typically your total election (annual election for DCFSA and HSA accounts, monthly elections for Parking and Transit accounts) divided by the number of pay periods.