American offers several different types of pretax spending accounts as a convenient way to help you lower your out-of-pocket expenses on eligible health, dependent care and commuter services.

Eligibility

You can choose from several types of spending accounts. Review your eligibility below.

AccountWho Is Eligible
Health care flexible spending account (HCFSA) All team members excluding those enrolled in the Core option
Dependent care flexible spending account (DCFSA)All team members
Health reimbursement arrangement (HRA)Team members enrolled in the Plus plan who complete a preventive care exam.*
Retirement health reimbursement arrangement (RHRA)**Team members enrolled in the Plus plan who complete a preventive care exam.*
Health savings account (HSA)Only team members enrolled in the Core medical option
Limited purpose flexible spending account (LPFSA)Only team members enrolled in the Core medical option
Commuter accountAll team members (options vary by location)
*If you have an HRA from prior years that has credits remaining, you are able to use those credits towards eligible medical, prescription, dental or vision expenses, as long as you are enrolled in any medical option but Core. If you are enrolled in the Core medical option, your HRA will be limited purpose and can only be used towards eligible dental and vision expenses.

**Available through a separate RHRA plan.

Account types

With an HCFSA, LPFSA and HSA, you can set aside part of your income for medical, dental, vision, and prescription expenses for you and your covered dependents. You can also open a DCFSA to help pay for child daycare, after school programs, elder care and more. Commuter accounts can help pay for eligible mass transit and parking expenses associated with your commute to work.

Select an option below to learn more:

HSA

Overview

An HSA allows you to contribute part of your paycheck on a pretax basis to pay for eligible health care expenses throughout the year. You can change the amount you contribute throughout the year (except during the last 31 days of the year), and your funds will never expire. You keep your HSA account even if you leave American, and can even invest your funds and earn interest. Plus, once you reach retirement age you can withdraw funds for non-health-related expenses without penalty, but subject to normal income tax.

Rollover

Funds never expire, even if you leave American.

Eligible Expenses

Eligible expenses include medical, dental, prescription, and vision.

2023 Maximum Annual Contributions*

You only                          $3,850

Family                              $7,750

*You can contribute an additional $1,000 annually if you are over age 55.  

How Do I Use My HSA?

When you enroll in the Core option, you will be given the opportunity to enroll in an HSA on the Benefits Service Center. After you set up your account, you will receive an Alight Smart-Choice Accounts debit card, if you don’t already have one, which you can use to spend any HSA funds. You can submit manual claims, check your balance and manage your account on the Benefits Service Center. You can also file claims using the Smart-Choice mobile app by downloading it on your mobile device from the Apple App Store or Google Play.

HSA Advance

When you enroll in the Core option and elect an HSA, we’ll make all or part of your goal amount available to pay eligible expenses before your HSA is built up. The HSA advance dollar are available each year starting Jan. 1.

  • You only coverage: Up to $1,000 of what you choose to contribute
  • Family coverage: Up to $2,000 of what you choose to contribute

What Else Should I Know?

Some expenses may require additional documentation to be submitted through the Benefits Service Center, so be sure to save all of your receipts.

If you use your HSA to pay for an expense that is not eligible, the expense will be subject to taxes plus a penalty.

You can find all the details on HSAs on the Plan Guides page.

 

 

HRA

OVERVIEW

Only team members who are enrolled in the Plus plan AND who get a preventive care exam during the benefit year are eligible to have credits deposited into an HRA. (Some team members may have HRA credits remaining from prior years’ programs.) You can use these credits to pay for eligible health care expenses now for yourself and your eligible dependents.

CONTRIBUTION LIMITS

American will make a one-time contribution of $500 in credits to your HRA each year and $1,000 to your each year, provided you are enrolled in the Plus plan AND receive a preventive medical exam. Only American can contribute credits to your account.

ROLLOVER

Funds roll over from year to year, and there is no limit. Any remaining credits at your retirement — as long as you’re 65-point plan eligible — roll over into your RHRA. (To be considered 65-point eligible at American, your age plus a minimum of 10 years of credited service at American must add up to 65.)

HOW DO I USE MY HRA?

Once credits are deposited into your account, you will receive an Alight Smart-Choice Accounts debit card, if you don’t already have one, which you can use to pay for eligible medical expenses. You can submit manual claims, check your balance and manage your account on the Benefits Service Center. You can also file claims using the Smart-Choice mobile app, available for download from the Apple App Store or from Google Play.

 

WHAT ELSE SHOULD I KNOW?

You can use your HRA credits to pay for eligible medical expenses as long as you are enrolled in the Standard, Plus, High Cost Coverage, DFW ConnectedCare, PPO 80 or PPO 90 medical option. If you’re enrolled in Core, you can still use your HRA, but only for dental and vision expenses until you go back to one of the above-mentioned plans.

Some expenses will require additional documentation to be submitted through the Benefits Service Center, so be sure to hang on to all of your receipts.

Should you leave American, you will only be able to receive reimbursement for claims incurred up to your last day of employment, unless you continue coverage under COBRA or retire under American’s 65-point plan.

HCFSA

Click here for a list of eligible medical, prescription, dental, vision, over-the-counter and other expenses. 

Overview

An HCFSA allows you to contribute part of your paycheck on a pre-tax basis to pay for eligible health care expenses throughout the year. The total annual amount you elect will be available to use from Jan. 1 through Dec. 31. Up to $570 of any remaining funds will rollover to the next plan year, the rest will be forfeited.

Contribution Limits

Between $120 and $2,850

Rollover

$570 from 2023 into 2024

How Do I Use My HCFSA?

After you set up your account you will receive an Alight Smart-Choice Accounts debit card, if you don’t already have one, which you can use to spend your FSA funds and previously accrued HRA credits, if applicable. You can submit manual claims, check your balance, and manage your account on the Benefits Service Center. You can also file claims using the Smart-Choice mobile app by downloading it on your mobile device from the Apple App Store or from Google Play.

Should I Get a HCFSA?

If you pay taxes, like saving money, and expect to have healthcare costs this year, the answer is probably yes. Since FSA contributions are tax-free, setting one up is an easy way to give yourself a raise. Just be sure to estimate your expenses carefully, since only $570 will rollover to the next plan year.

What Else Should I Know?

Some expenses will require additional documentation to be submitted through the Benefits Service Center, so be sure to hang on to all of your receipts.

Should you leave American, you will only be able to receive reimbursement for claims incurred up to your last day of employment, unless you continue coverage under COBRA.

You can find all the details on HCFSAs on the Plan Guides page.

DCFSA

Overview

The DCFSA allows you to set aside money on a pretax basis to help pay for eligible day care expenses for your eligible adult and child dependents (up to age 13) so that you and your spouse can work, look for work, or attend school.

Contribution Limits

Up to $5,000 per family (or $2,500 if married and filing taxes separately).

Rollover

Funds may not be rolled over from year to year. However, you have a little more time to use the funds in your DCFSA. You can incur expenses for the plan year through March 15 of the following year.

Eligible Expenses

Funds may be used for:

  • Eligible day care expenses for children under 13 or children who can’t care for themselves.
  • Elder care and home nursing expenses for adult tax dependents who can’t care for themselves.

Examples include day care, after-school care, summer day camps, preschool and elder care. Ensure your planned care is covered before setting up your account. Click here to view covered expenses.

How Do I Use My DCFSA?

You can submit claims, check your balance and manage your account on the Benefits Service Center. You can also file claims using the Alight Smart-Choice Accounts mobile app by downloading it on your mobile device from the Apple App Store or Google Play. The Dependent Care e-Signature feature on the mobile app allows you to display your claim form while on the go and even have your dependent care provider sign it directly on the screen of your phone.

Should I Get a DCFSA?

If you expect significant eligible dependent care expenses next year, a DCFSA is a great way to help cover costs. Alternatively, you may choose to claim these expenses for a dependent care credit when you file your taxes, which could potentially save you more, depending on the number of dependents and your tax bracket.

What Else Should I Know?

Some expenses will require additional documentation to be submitted through the Benefits Service Center, so be sure to save all your receipts.

Should you leave American, you will only be able to receive reimbursement for claims incurred up to your last day of employment. DCFSAs are not eligible for COBRA.

You can find all the details on DCFSAs in the Summary Plan Description on the Plan Guides page.

 

LPFSA

Click here for a list of eligible dental and vision expenses.

Overview

An LPFSA allows you to contribute part of your paycheck on a pre-tax basis to pay for eligible dental and vision expenses throughout the year. Eligible expenses are qualified dental and vision expenses only. The total annual amount you elect will be available to use from Jan. 1 through Dec. 31. Up to $570 of any remaining funds will rollover to the next plan year, the rest will be forfeited.

Contribution Limits

Between $120 and $2,850

Rollover

$570 from 2023 into 2024

Eligible Expenses

Eligible expenses are qualified dental and vision expenses only.

Should I Get A LPFSA?

Since you’re enrolled in the Core and, therefore, eligible to contribute to an HSA with the many tax advantages that come with it, take careful consideration before enrolling in a LPFSA. Only enroll in a LPFSA if you know you will have significant dental and vision expenses beyond what you will be able to cover with your HSA.

How Do I Use My LPFSA?

After you set up your account you will receive an Alight Smart-Choice Accounts debit card, if you don’t have one already, which you can use to spend your LPFSA funds and previously accrued HRA credits, if applicable. You can submit manual claims, check your balance and manage your account on the Benefits Service Center. You can also file claims using the Smart-Choice Accounts mobile app by downloading it on your mobile device from the Apple App Store or Google Play.

What Else Should I Know?

You cannot use both your LPFSA and your HSA together to pay for the same expense. Some expenses will require additional documentation to be submitted through the Benefits Service Center, so be sure to save all your receipts.

Should you leave American, you will only be able to receive FSA reimbursement for claims incurred up to your last day of employment, unless you continue coverage under COBRA.

You can find all the details on LPFSAs on the Plan Guides page.

Commuter account

Overview

A commuter account allows you to use pretax funds to pay for eligible mass transit and parking expenses associated with your commute to work. Contributions to a commuter account are deducted from your paycheck on a pretax basis, reducing your taxable income. You can save an average of 30% on your eligible transit and parking expenses.

Contribution Limits

Monthly limits are set by the IRS. For 2023, it’s $300 per month.

Eligible Expenses

Eligible expenses include transit passes, tokens, fare cards, vouchers, or similar items entitling you to ride a mass transit vehicle to or from work. The mass transit vehicle may be publicly or privately operated and includes bus, rail or ferry. Benefits may not be used for tolls, gas, mileage or other personal commuting expenses.

How do I use my commuter benefits?

You can order transit passes through the Benefits Service Center by selecting the Commuter Account tile. Once you place an order, expenses will automatically be deducted from your paycheck. The amount — up to the federally mandated pretax limit per month — will be deducted before taxes are withheld. Purchases that exceed the pretax limit will be processed on a post-tax basis.

You can also establish recurring orders on the website so the products are automatically sent to you each month. With recurring orders, deductions from your pay and the purchase of your monthly benefits will continue indefinitely until you stop or suspend the purchase.

What else should I know?

You can join or discontinue the benefit at any time based on the current ordering period as long as you’re actively working. You can’t cancel your monthly order after the ordering period is closed. In general, the deadline to place orders is the 10th of the month preceeding the benefit month. This deadline can vary depending on the specific transit authority.

 

RHRA

Alight Smart-Choice Accounts mobile app

Apple App Store |  Google Play Store

Save time by managing your spending accounts with this app anywhere, anytime. The Smart-Choice Mobile app goes where you go, making it convenient to check your balance, submit claims, get reimbursed, take photos of your receipts and more.