VIDEO: 2025 REIMBURSEMENT ACCOUNTS

NOVEMBER 2024

Save money on taxes with reimbursement accounts

Available to Mainland and Hawaii only

Wouldn’t it be nice to save money on your annual taxes while paying for things you need, such as medications and childcare? That’s the benefit of reimbursement accounts.

When you enroll in Costco reimbursement accounts during Annual Enrollment, you can put aside pretax dollars to reimburse yourself for eligible expenses throughout the year.

Health Care Reimbursement Account (HCRA) – For eligible health care expenses.

Dependent Care Assistance Plan (DCAP) – For eligible dependent care expenses.

Watch the video below for a quick overview of your reimbursement account options, administered by Inspira Financial^™.

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Frequently asked questions about reimbursement accounts

How does a reimbursement account work?

When you enroll in an HCRA or DCAP, you choose how much to contribute by thinking about how much you’ll need to cover your expenses. If you have a reimbursement account for 2024, you should also consider the amount you may roll over from 2024 to 2025. The money is automatically taken out of your paycheck and deposited into your reimbursement account before payroll taxes are calculated. You can fund these accounts up to the annual limit set by the IRS.

When do I enroll in an HCRA and DCAP?

HCRA

If you want to enroll or re-enroll in an HCRA for 2025, you must make your elections during Annual Enrollment, November 1 – 26. If you enrolled in a HCRA for 2024, you need to re-enroll for 2025 to participate. You can only enroll in an HCRA during Annual Enrollment.

DCAP

Enroll or re-enroll in a DCAP for 2025 during Annual Enrollment, November 1 – 26. You can enroll, change or stop your DCAP election at any time during the year if there is a qualifying change in your dependent care needs. If you enrolled in a DCAP for 2024, you need to re-enroll for 2025 to participate.

What expenses do reimbursement accounts cover?

HCRA

You can use your HRCA for eligible health care expenses for you, your spouse and eligible dependents. These include items that are not covered by your medical plan, such as your copays, deductibles and coinsurance, as well as other health care items and services, such as prescriptions and dental and vision expenses. 

See a complete list of eligible health care expenses. 

DCAP

Your DCAP can be used for eligible dependent care expenses necessary for you and your spouse to work. Funds can be used to pay for childcare for your dependents age 12 and under, or to care for another family member incapable of self-care such as a spouse, a child age 13+ or a parent. Expense examples include day care, after-school care and in-home care.  

See a complete list of eligible dependent care expenses. 

Note: The DCAP cannot be used for dependent care health care expenses.  

How do I pay for items and services with my reimbursement accounts?

HCRA

You have a few different ways to access your HCRA. The default reimbursement method for the HCRA is autopay. This feature automatically pays your portion of medical and dental claims, such as copays, directly from your account. If you plan to use your funds for something specific, such as braces, you can turn off autopay at the start of the year on the Inspira website or app. You’ll also receive the Inspira Card^® — the HCRA debit card — to use for eligible expenses at the Costco Optical Department, Costco Hearing Aid Center or any pharmacy. If needed, you can pay upfront for an eligible item or service and submit a claim for reimbursement. 

DCAP

To use your DCAP, you need to pay upfront for your eligible dependent care or service, then submit a receipt and a claim form to get reimbursed from your account. You can submit claims on the website or app.

How much can I contribute to my reimbursement accounts?

HCRA

You can contribute $120-$3,300 per year to your HCRA account. This funding limit is set each year by the IRS. You can access the full amount of your annual HCRA election on January 1, 2025.

DCAP

You can contribute up to $5,000 per year to your DCAP account, or $2,500 if married and filing separately. Access is limited to the current money in your account. You can get reimbursed up to the amount of your year-to-date contributions, not the entire annual amount selected.

What happens if I have funds left over at the end of the year?

HCRA

Only a small portion of your HCRA balance can roll over to the next plan year. If you are enrolled in an HCRA for 2024, your rollover amount to use in 2025 is $640. This amount is determined each year by the IRS. You forfeit any balance over the rollover limit that remains in your account after the claim filing deadline of April 30, 2025.

DCAP

The DCAP offers a grace period, where funds from the previous year can still be accessed. You can use the funds you contributed to the DCAP for 2024 for any eligible services through March 15, 2025. Claims can be submitted until April 30, 2025. Any funds remaining after the deadline will be forfeited.

Visit the Enrollment Website on Costcobenefits.com to make your reimbursement account elections during Annual Enrollment. For more information, see the resources below.