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Best Practices for Pre-tax Accounts

  • Updated

Managing your pre-tax benefits doesn’t have to be stressful! Here are some quick tips to help you stay on top of your account, funding, claims, and reimbursements all year long.

Funding: When will my money be available?

💰 FSA (Flexible Spending Account)

  • Your full annual balance is available at the start of the plan year.
  • You can start spending it right away!

💰 DCFSA, HSA, and Commuter Benefits

  • Funds become available after your first payroll cycle of the new year.
  • Money is added per pay period and accrues over time.
  • Once contributions are received, it may take 2-3 business days to show in your account.

⚠️ DCFSA (Dependent Care FSA) Reminder

  • Unused funds are forfeited after the end of the plan year if you don’t submit claims—even if you’ve already contributed the money.

Check out this guide for different ways to use your pre-tax money.

Getting Reimbursed

🏦 Link Your Bank Account

  • You must link a bank account to receive reimbursements.
  • Check if you need to verify your bank deposit or accept Terms of Service—there's a second step required!

⏳ How Long Does Reimbursement Take?

Using Your Forma Card

New employees will receive an email to verify your address—once verified, a Forma Pre-Tax Card will be sent to you.

💳 FSA & DCFSA

  • Only use your card for expenses from the current year.
  • DO NOT use your card in 2025 for a 2024 expense—it will deduct from your 2025 balance and could lock your card.
  • If you need to submit a claim after December 31st, you must file a manual claim instead.
  • If you're already enrolled in pre-tax benefits, your current Forma Card is valid for 3 years—no need for a new one!

📌 Forma Card Receipts

  • Always keep your receipts, even for small purchases.
  • Receipts are required for every transaction. If you don’t upload one, your card may be locked.
  • Some receipts (e.g., from Target, CVS, Walgreens) can help resolve issues if your card gets locked due to a balance due.
  • Make sure your receipt includes all required details, or you’ll be asked to submit it again.

🔹 More help: Pre-tax reimbursement claim/receipt forms

Submitting Claims

🚨 One Claim Per Date!

  • Submit claims one month at a time—if you submit for multiple months at once, your claim may be denied.

📝 FSA & DCFSA Run-out Period

  • If submitting an expense after the calendar year ends, file a manual claim—your card cannot be used.
  • Make sure your dependents are added in the Forma Portal for smooth claims processing.

Grace Periods: Extra Time to Spend Your Money

⚠️ Available only if your employer offers it

⏳ FSA, LPFSA, and DCFSA

  • If your employer provides a grace period, you’ll have an extra 75 days to incur expenses before the runout period ends.
  • Example: You could have an expense in February 2025 and still submit it using 2024 funds.

Year-End Balances & Carryover Funds

💼 If your company offers carryover benefits:

  • Your prior year’s balance won’t be available right away—it transfers after the run-out period ends.
  • Example: 2024 funds won’t be available in your 2025 account until May 2025.
  • The IRS limits how much can carry over, so submit your claims on time to use your money!

New to Forma? Here’s What to Know!

📲 Download the Forma App for easy claims and reimbursements on the go!

💡 Run-out Claims

  • For 2024 run-out claims, refer to your previous benefits provider—Forma starts processing claims from January 1, 2025, onward.
  • Your carryover balance won’t appear in Forma until May (after the transfer is completed).

🔹 HSA Transfers

      Bulk transfers

  • Bulk HSA transfers will be processed by your employer at the end of March 2025.
  • Forma won’t have access to your 2024 balance until the transfer is done.
  • HSA transfers take 4-6 weeks—plan accordingly!

      Individual transfers

Getting the Best Support Experience

📆 Peak Support Season: December–February
📩 Response Time: Up to 3 business days during busy periods

✅ Tips for Faster Help:

  • Check your email for responses—even if you used the chat feature.
  • Send one message with all the details. Multiple messages can delay your response.
  • Include your account email and full question for faster assistance!

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