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Medical Reimbursement Account

A medical reimbursement account allows you to pay for eligible medical expenses pre-tax.


You estimate how much you'll spend on qualified medical expenses in the coming year and decide on a contribution amount. When you have an eligible expense, you submit a claim form and, once approved, are reimbursed with tax-free dollars from your account.


The amount you choose to contribute for the year is taken out of your paycheck in equal installments each pay period. However, the total amount you elect for your medical reimbursement account is available any time during the year, even if the funds haven't been withheld from your pay yet.


Give some thought to calculating how much money to contribute for the year:

  • Unless you have a qualified family status change, you cannot change your contribution amount during the year.
  • If you don't use all the money you've contributed by the end of the year, you lose it. However, some employers offer a grace period of up to two-and-a-half months to use the money.


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