Reimbursement Accounts
Reimbursement accounts allow benefits-eligible faculty and staff to use pre-tax payroll dollars to pay for eligible health care and/or dependent care expenses. By using pre-tax dollars for these expenses, it reduces overall tax liability and saves you money. The reimbursement accounts are administered by Employee Benefit Plan Administration (EBPA).
Reimbursement Account Guidelines
Reimbursement accounts are regulated by the Internal Revenue Service, which requires Northeastern to administer the plans according to specific guidelines, such as:
At the end of each calendar year for dependent care and March 15 for health care reimbursement, any unused funds are forfeited. For this reason, it is extremely important to make an accurate estimate of future health care and dependent care expenses. Any overestimated funds cannot be returned.
Reimbursement can only be made for IRS-defined eligible expenses.
Eligibility and enrollment must be clearly defined as oultined in the eligibility and enrollment guidelines.
Participation in the Reimbursement Accounts is voluntary and requires re-enrollment each calendar year during open enrollment. The two types of Reimbursement Accounts are: