These accounts let you set aside money before taxes for health care, dependent care and commuting costs. Rippling administers all of them.
Health Savings Account (HSA)
An HSA is available when you enroll in the HDHP OAP 6350 medical plan. Contributions come out of your paycheck before taxes, so you pay less income tax. Your balance can earn growth and be invested, and that growth is generally tax-free. When you withdraw money for qualified medical expenses, that’s generally tax-free too.
The account belongs to you. Your balance rolls over every year and stays with you if you leave Petfolk.
2027 contribution limits
- Self-only coverage: $4,500
- Family coverage: $9,000
- Age 55 or older: an extra $1,000
These limits include money from every source. You can change your contribution during the year.
What you can use it for
- Your medical deductible, copays and coinsurance
- Prescriptions
- Dental care, including cleanings, fillings and orthodontia
- Vision care, including exams, glasses and contact lenses
- Mental health counseling
- Many over-the-counter medicines and first aid supplies
Investing your HSA
Once your balance reaches the account’s minimum, you can invest it in the funds available through your account. Investment gains are generally tax-free when used for qualified expenses. Keep in mind that investments can lose value.
Who can contribute
You must be enrolled in the HDHP OAP 6350. You generally can’t contribute if you’re enrolled in Medicare, covered by another medical plan that isn’t a high deductible health plan, or claimed as a dependent on someone else’s tax return.
Flexible Spending Accounts (FSA)
An FSA lets you pay for eligible expenses with money taken from your paycheck before taxes. Petfolk offers three:
- Health care FSA: for eligible medical, dental and vision costs such as copays, deductibles, prescriptions and glasses. Available if you are not enrolled in the HDHP OAP 6350 with an HSA.
- Limited purpose FSA: for eligible dental and vision costs only. It works alongside an HSA, so it’s the FSA to choose if you’re on the HDHP OAP 6350.
- Dependent care FSA: for child or adult dependent care that lets you and your spouse work, such as daycare, after-school care and summer day camp. Available with any medical plan.
You choose an annual amount during open enrollment. It’s taken from your paychecks before taxes and is available for eligible expenses. Your election is generally fixed for the plan year unless you have a qualifying life event, so plan carefully.
2027 limits
- Health care and limited purpose FSAs: $3,500
- Dependent care FSA: $7,500 ($3,750 if married filing separately)
Rollover
Up to $700 of unused 2027 money in your health care or limited purpose FSA carries into the 2028 plan year. Anything above $700 is forfeited.
Commuter benefits
Set aside pre-tax money for eligible transit and parking costs:
- Transit: public transportation such as train, subway, bus and commuter vanpool
- Parking: parking at or near your work location, or at a station where you catch transit to work
For 2027, the IRS monthly limit is $350 for transit and $350 for parking. The two limits are separate, and any employer contribution counts toward them.
Unlike most benefits, you’re not locked in. Set your monthly amount at open enrollment or any time during the year, and change or stop it whenever your commute changes in Rippling. Unused balances generally carry over month to month, but you may forfeit money left in the account if you leave Petfolk.
This is general information, not tax advice. Money used for anything other than qualified expenses may be taxable and subject to a penalty. Plan rules and eligible expenses are in the plan documents.
