Pre-Tax Accounts

HSA, FSA, and Commuter 

iRhythm offers several ways to save on taxes while paying for healthcare, dependent care, and commuting expenses. Our Health Savings Account (HSA), Flexible Spending Accounts (FSA), and Commuter Benefits allow you to set aside pre-tax dollars for eligible expenses—lowering your taxable income and stretching your dollars further.

  • HSA: Save pre-tax for medical, dental, and vision expenses (available with HDHP plans).
  • FSA: Set aside pre-tax dollars for healthcare or dependent care expenses, even if you’re not HSA-eligible.
  • Commuter Benefits: Use pre-tax dollars (up to $340 per month) for eligible transit and parking costs, making your daily commute more affordable.

By taking advantage of these pre-tax accounts, you can maximize your savings and make your money go further. 

What it is: A tax-advantaged savings account you can use to pay for eligible medical, dental, and vision expenses. Only available to employees enrolled in a Cigna HDHP plan (OAP or Local Plus).

Key features:

  • HDHP Required: You must be enrolled in Cigna HDHP OAP or Local Plus, not covered by another plan, and not claimed as a dependent on someone else’s tax return.
  • Pre-Tax Contributions: Contribute pre-tax dollars to lower your taxable income. Interest or earnings are tax-free when used for qualified expenses.
  • Funds from iRhythm: iRhythm contributes to your HSA regularly. Contributions are prorated based on your start date.
  • Easy Access to Funds: Use a convenient debit card from WEX to pay for eligible expenses.
  • The Money Is Yours: HSA funds roll over year to year and remain yours even if you change jobs or plans. You can also save for retirement.

2026 HSA Contribution Limits

Coverage Type iRhythm HSA Maximum Contribution Maximum Employee Contribution 2026 Total Maximum Contribution Age 55+ Catch-Up Contribution
Individual $750  $3,650 $4,400 Additional $1,000
Family $1,500 $7,250 $8,750 Additional $1,000

Tip: You must re-elect your HSA contribution amount every year during Open Enrollment to continue participating.

What it is: Flexible Spending Accounts allow you to set aside pre-tax dollars for eligible health or dependent care expenses. You must elect the annual amount you want to contribute to one or both accounts each year.

Key features:

  • Use It or Lose It: Any funds you do not spend during the plan year will be forfeited, except the $680 rollover for Healthcare and Limited Purpose FSA.
  • Grace Period: You can roll over $680 from your Healthcare or Limited Purpose FSA to the next year.
  • Mid-Year Changes: Contribution changes mid-year are only allowed with a Life Status Change Event.
  • No Transfers Allowed: You cannot transfer funds from one FSA to another.

2026 FSA Comparison

Feature Healthcare FSA Limited Purpose FSA Dependent Care FSA
Who Can Use It? Eligible employees not enrolled in an HSA Employees enrolled in an HSA (dental and vision only) All eligible employees
Pre-Tax Limit Up to $3,400 Up to $3,400 Up to $7,500
($3,750 if married and filing separately)
What You Can Spend It On Medical, dental, and vision deductibles, copays, coinsurance Dental and vision expenses only Care for children under 13, disabled children, dependent adults

Note: If the Dependent Care FSA does not pass certain IRS non-discrimination testing, election amounts may be changed. We will tell you if this applies to your situation.

With iRhythm’s Commuter Benefit, you can set aside up to $340 month in pre-tax dollars to pay for eligible transit expenses and up to $340 month in pre-tax dollars to pay for eligible parking expenses. This lowers your taxable income and helps your commuting dollars go further.

What’s covered?

  • Public transit (bus, train, subway, etc.)
  • Parking expenses related to your commute

How it works:

  • Enroll for your Commuter Account in Workday.
  • Once enrolled, manage your account through WEX: https://benefitslogin.wexhealth.com/
  • Funds are deducted from your paycheck before taxes are applied
  • Use your commuter account for qualified expenses—no receipts or claims needed for most purchases

Keep in mind:

Your deduction amount may vary from month to month based on taxes. You may also make changes or update your election amount at any time throughout the year. If your employment ends, any remaining funds stay in the account, and the account will close as of your termination date.

Key Reminders

  • HSA vs. FSA: You cannot contribute to both a Healthcare FSA and an HSA in the same plan year. If enrolled in an HSA, you may only contribute to a Limited Purpose FSA.
  • Commuter Account: You can participate in the Commuter Benefit alongside your HSA or FSA. This account lets you set aside pre-tax dollars for eligible transit and parking expenses, helping you save on your commute.
  • Pre-Tax Advantage: HSA, FSA, and Commuter Accounts all reduce your taxable income, helping you keep more of your earnings.
  • Re-Election Required: You must re-elect your contribution amounts for each account during every Open Enrollment period.

Contacts

WEX

IRS Publication 503 (Dependent Care)

IRS Publication 969 (HSA and FSA)

IRS Publication 15-B (Commuter)