Pre-Tax Benefits 101

What happens if I don't provide a receipt for my pre-tax benefits?

The IRS requires proof that a purchase was eligible, also known as "substantiation", for pre-tax benefit spending. If this cannot be auto-generated based on information provided by the merchant at time of sale, you will be required to provide it. 

If you do not provide required substantiation within 90 days of making a purchase, card spending for the benefit the purchase was made under will be disabled until substantiation is provided.  

Once valid substantiation is provided, card spending will be re-enabled. 

Why did my card spending become disabled?

If you do not provide missing substantiation within 90 days of making a pre-tax benefit purchase, card spending for the affected benefit will be disabled. 

You will receive both a warning and a confirmation via email that spending has been disabled.

Purchases that are missing required substantiation are clearly indicated in the Benepass app with the label "Needs information". 

In advance of card spending becoming disabled: 

  • All transactions missing required substantiation will show a "Needs information" label
  • Any transactions in this state will be flagged in the "Updates" section of the Home page
  • You will receive regular reminder emails about missing substantiation (if email preferences are enabled for your account)

How do I re-enable card spending?

Attach the required substantiation to the affected transaction(s) to re-enable card spending for the affected benefit. 

To find the relevant transaction(s) you can either: 

  • Follow the link in the email you receive
  • Follow the prompt shown in the "Updates" section of the Home page
  • Click on the error message displayed at the bottom of the Benefit's overview page, or
  • Navigate to the transaction list for the benefit and filter for the "Needs information" status

Once substantiation is provided and verified, card spending will be re-enabled. 

Which benefits does this apply to?

This applies to most IRS-set pre-tax benefits: 

  • Health Flexible Spending Accounts (FSAs)
  • Limited Purpose Flexible Spending Accounts (LPFSAs)
  • Dependent Care Flexible Spending Accounts (DCFSAs)
  • Health Reimbursement Arrangements (HRAs)
  • Commuter Transit Accounts
  • Commuter Parking Accounts

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