Spending accounts

Spending accounts are tax-savings opportunities for eligible employees
smiling woman with jar spilling bills and coins

Spending accounts are a smart and convenient way for you to stretch your paycheck and receive real tax savings. They accomplish those goals by allowing you to set aside money on a before-tax basis to pay for certain eligible health care and dependent care expenses. After you pay for an eligible expense and file a claim you will be reimbursed from your spending account contributions.

BP offers two types of spending accounts, both administered by PayFlex (now part of Aetna):

  • The Health Care Flexible Spending Account (HCFSA).
  • The Dependent Care Spending Account (DCSA).

Depending on your needs, you may choose to enroll in either the HCFSA or the DCSA, or both. When you enroll in a spending account, you decide how much you want to contribute on a before-tax basis up to certain limits.

While spending accounts offer tax advantages, there are some rules you will need to follow. With a little planning, you will find that spending accounts offer you significant savings for your efforts.

You may enroll whether or not you have BP medical, dental or vision plan coverage. However, you may NOT enroll in the HCFSA if you are enrolled in BP's Health+Savings Option, regardless of whether you choose to contribute to a Health Savings Account. Also, if you are enrolled in a high deductible health plan with a health savings account through your spouse's employer, your enrollment in the HCFSA would negatively affect the benefits of your other plan.

The Aetna Commuter Benefit is another way to lower your taxes. This benefit allows you to pay for certain work-related transportation expenses via convenient pre-tax payroll deductions.

Because this document is intended as a summary of a BP benefits plan, it is not intended to describe each plan provision in full detail. More complete details are contained in the governing plan documents (including applicable insurance policies). While we intend to update this summary on a regular basis, it is possible that at any point this summary may be neither current nor complete. Further, differences between this summary and the applicable plan document are not intended. If, however, any differences are found to exist, the relevant provisions of the applicable plan document — and not the summary — will govern.

BP reserves the right to amend or terminate a plan at any time without advance notice.

 

Publication date: April 2018

 

Related links

A quick reference guide on online features and tools to help you use your spending accounts.
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