Dealing with money and finances can be overwhelming. But small changes, wise choices, and a little guidance and support can help you reach your financial goals.
“I can’t afford a house, so I might as well treat myself to a fun weekend.” That might seem like a good idea in the moment. But here’s the truth: small, intentional spending decisions can add up more quickly than you think, and help you reach big goals.
Reduced spending can also reduce waste in landfills. Ordering out for dinner means higher meal costs plus plastic bags, boxes and other disposable materials. Meal planning for the week on a free day helps you save money and reduce your carbon footprint.
Write down your financial goals
What are your financial goals? What’s important to you? SmartDollar, your no-cost confidential online personal finance program, is designed to help you reach your goals.
SmartDollar’s step-by-step plan helps you take small steps to pay off debt and save more using the online budgeting tool. It keeps you motivated with video lessons from personal finance experts and gives tips to:
Pay off debt faster
Set up an emergency fund
Save for college
Buy a car
Save for a down payment on a house
Free one-on-one financial coaching is also included. To sign up and get started, visit SmartDollar.com/enroll/costco or text Costco to 33789* to download the app.
If you want to grow your financial knowledge, additional financial resources are available through Resources for Living. Get a free 30-minute consultation per concern with a financial specialist. They can help with things like budgeting, credit repair and reports, mortgages and refinancing, debt management and tax questions. Visit RFL.com/Costco to request a free financial consultation.
Be smart about big purchases
Do your research before buying a house or car. Take the time to compare prices and learn about the market in your area. Consider things like rates and resale value to make an informed decision and get the best value for your money. Consider checking out the Costco Auto Program.
Watch these SmartDollar videos for additional ways to save:
Your Costco benefits can help you make the most of your money.
Save on monthly expenses — New for 2025, you have access to LifeMart for employee discounts on gym memberships, virtual fitness and childcare.**
Contribute to your 401(k) —Costco offers matching and annual contributions to your retirement plan with T. Rowe Price.To check your 40l(k) account balance, set up automatic payroll deductions, adjust your investment mix and much more, go to RPS.TRowePrice.com.
Purchase company stock — The Employee Stock Purchase Plan (ESPP) lets you buy Costco stock through payroll deductions. You choose the amount you’d like to invest per pay period. To learn more, visit Costcobenefits.com > Financial Wellbeing > Employee Stock Purchase Plan (ESPP).
Save on taxes — Use reimbursement accounts for eligible expenses.
A Health Care Reimbursement Account (HCRA) lets you set aside pretax dollars to pay eligible medical expenses. You can use it for things like copays, deductibles and coinsurance, dental and vision expenses, plus prescriptions and over-the-counter items. Sign up for an HRCA during Annual Enrollment. To learn more, visit Costcobenefits.com > Financial Wellbeing > Health Care Reimbursement Account.
A Dependent Care Assistance Plan (DCAP) lets you set aside pretax dollars to pay for qualified child and elder care expenses needed for you and your spouse to work. You can use it for expenses like day care, before- and after-school care, nursery and pre-school, and in-home aids. Keep in mind that the DCAP isn’tfor dependent health care expenses. You can sign up, change or stop your DCAP based on your dependent care needs. To learn more, visit Costcobenefits.com > Financial Wellbeing > Dependent Care Assistance Plan.
NOTE: If you were enrolled in a reimbursement account in 2024, remember that your claim filing deadline is April 30. Any unused funds are forfeited after this date. Only your HCRA rollover amount of up to $640 can be carried over from 2024 to use in 2025.
*Message and data rates may apply.
**Childcare discounts are not available in Puerto Rico.
Wouldn’t it be nice to save money on your annual taxes while paying for things you need, such as medications and childcare? That’s the benefit of reimbursement accounts.
When you enroll in Costco reimbursement accounts during Annual Enrollment, you can put aside pretax dollars to reimburse yourself for eligible expenses throughout the year.
Health Care Reimbursement Account (HCRA) – For eligible health care expenses.
Dependent Care Assistance Plan (DCAP) – For eligible dependent care expenses.
Watch the video below for a quick overview of your reimbursement account options, administered by Inspira Financial™.
Your health and the health of your family is a top priority at Costco. That’s why we are committed to providing you and your family with affordable benefits that help you receive quality care whenever needed. One of those benefits are the reimbursement accounts available through Inspira Financial. Here’s everything you need to know about reimbursement accounts.
There are two types of reimbursement accounts available to you as a Costco employee: the HCRA and the DCAP. The HCRA or Health Care Reimbursement Account allows you to set aside pre-tax dollars to reimburse yourself for eligible medical expenses such as copays, deductibles and coinsurance, dental and vision expenses, prescriptions, and over-the-counter items. Annual enrollment is the only time you can enroll in an HCRA account and the HCRA must be re-elected every year if you want to continue your account.
The DCAP or Dependent Care Assistance Plan allows you to set aside pre-tax dollars to reimburse yourself for qualified child and elder care expenses necessary for you and your spouse to work. Funds can be used to pay for child care for your dependents, age 12 and younger, or for a spouse, parent, or dependent incapable of self-care. Examples of DCAP expenses are things like daycare, before and after school care, nursery and preschool, and in-home aids. Please note that the DCAP cannot be used for dependent healthcare expenses. You need to enroll in the DCAP every year to continue your account. However, you can enroll, change, or stop your enrollment whenever there is a qualifying change to your dependent care needs throughout the year.
Both types of accounts are funded by automatic pre-tax payroll deductions from every paycheck. If you choose to enroll in one or both of the reimbursement accounts during annual enrollment, you’ll be prompted to choose how much money you would like to contribute for the plan year up to the annual limit. Each account has an annual funding limit set by the IRS. Funds will then be deducted pre-tax from your paychecks and deposited into these reimbursement accounts. While you can access the full amount of your annual HCRA election beginning January 1st, with the DCAP, you can only access the amount currently in your account at the time of your reimbursement request.
If you enroll in the HCRA, you’ll have a few different ways to access your account. The default reimbursement method is autopay. The HCRA autopay feature will automatically pay your portion of medical and dental claims, including copays, deductibles, and coinsurance. If you have specific plans for your HCRA funds like paying for braces, be sure to turn off autopay at the start of each year on the Inspira website or app. You’ll also receive a debit card you can use to pay for eligible expenses at these locations: Costco Pharmacy, Costco Online Pharmacy, Costco Optical, and the Costco Hearing Aid Center. You can check your available account balance on your Aetna member website under Flexible Spending Account or FSA.
For the DCAP, you can submit a claim for reimbursement as soon as you have an eligible expense through the Inspira website or app. You’ll be reimbursed up to the current balance in your account.
Before you enroll, take a look at your healthcare and dependent care expenses for the previous year and think about needs in the coming year to get a sense of how much you would like to contribute. Keep in mind that if you are currently enrolled in an HCRA, you’ll want to think about whether you’ll have funds left in your account at the end of this year that you can roll over into next year. It is important to remember that funds in both accounts are use it or lose it per IRS rules.
Only a small portion of your HCRA balance can roll over to the next plan year. This amount is determined annually by the IRS. Only participants who have an active HCRA as of December 31st are eligible for this rollover. Any funds beyond the rollover amount are forfeited after the claim filing deadline. This is why it’s so important to consider your anticipated expenses for the coming year before selecting a contribution amount for each account.
If you have a larger amount in your DCAP account than you expected as the end of the plan year approaches, you can take advantage of the grace period. The DCAP offers a grace period at the beginning of the following year where funds from the previous year can still be used. Don’t forget to submit all your reimbursement claims by the filing deadline as any funds left over after this period will be forfeited. Be sure to calculate your contributions carefully.
And that’s the basics. If you have any questions or need more information, just visit Costcobenefits.com. Thanks for watching, and remember, we’re in this together.
Frequently asked questions about reimbursement accounts
How does a reimbursement account work?
When you enroll in an HCRA or DCAP, you choose how much to contribute by thinking about how much you’ll need to cover your expenses. If you have a reimbursement account for 2024, you should also consider the amount you may roll over from 2024 to 2025.The money is automatically taken out of your paycheck and deposited into your reimbursement account before payroll taxes are calculated.You can fund these accounts up to the annual limit set by the IRS.
When do I enroll in an HCRA and DCAP?
HCRA
If you want toenrollor re-enroll in an HCRA for 2025, you must make your elections during Annual Enrollment, November 1 – 26. If you enrolled in a HCRA for 2024, youneed to re-enroll for 2025 to participate.You can only enroll in an HCRA during Annual Enrollment.
DCAP
Enroll or re-enroll in a DCAP for 2025 during Annual Enrollment, November 1 – 26. You can enroll, change or stop your DCAP election at any time during the year if there is a qualifying change in your dependent care needs. If you enrolled in a DCAP for 2024, you need to re-enroll for 2025 to participate.
What expenses do reimbursement accounts cover?
HCRA
You can use your HRCA for eligible health care expenses for you, your spouse and eligible dependents. These include items that are not covered by your medical plan, such as your copays, deductibles and coinsurance, as well as other health care items and services, such as prescriptions and dental and vision expenses.
Your DCAP can be used for eligible dependent care expenses necessary for you and your spouse to work. Funds can be used to pay for childcare for your dependents age 12 and under, or to care for another family member incapable of self-care such as a spouse, a child age 13+ or a parent. Expense examples include day care, after-school care and in-home care.
Note: The DCAP cannot be used for dependent care health care expenses.
How do I pay for items and services with my reimbursement accounts?
HCRA
You have a few different ways to access your HCRA. The default reimbursement method for the HCRA is autopay. This feature automatically pays your portion of medical and dental claims, such as copays, directly from your account. If you plan to use your funds for something specific, such as braces, you can turn off autopay at the start of the year on the Inspira website or app. You’ll also receive the Inspira Card® — the HCRA debit card — to use for eligible expenses at the Costco Optical Department, Costco Hearing Aid Center or anypharmacy.If needed, you can pay upfront for an eligible item or service and submit a claim for reimbursement.
DCAP
To use your DCAP, youneed to pay upfront for your eligible dependent care or service, then submita receipt and a claim form to get reimbursed from your account. You can submit claims on the website or app.
How much can I contribute to my reimbursement accounts?
HCRA
You can contribute $120-$3,300 per year to your HCRA account. This funding limit is set each year by the IRS. You can access the full amount of your annual HCRA election on January 1, 2025.
DCAP
You can contribute up to $5,000 per year to your DCAP account, or $2,500 if married and filing separately. Access is limited to the current money in your account. You can get reimbursed up to the amount of your year-to-date contributions, not the entire annual amount selected.
What happens if I havefunds left over at the end of the year?
HCRA
Only a small portion of your HCRA balance can roll over to the next plan year. If you are enrolled in an HCRA for 2024, your rollover amount to use in 2025 is $640. This amount is determined each year by the IRS.You forfeit any balance over the rollover limit that remains in your account after the claim filing deadline of April 30, 2025.
DCAP
The DCAP offers a grace period, where funds from the previous year can still be accessed. You can use the funds you contributed to the DCAP for 2024 for any eligible services through March 15, 2025.Claims can be submitted until April 30, 2025. Any funds remaining after the deadline will be forfeited.
Visit the Enrollment Website on Costcobenefits.com to make your reimbursement account elections during Annual Enrollment. For more information, see the resources below.
Taking care of yourself and your family can have a big impact on your budget. There are the everyday expenses, including medications and first aid supplies and larger ones, like day care and orthodontia. But here’s some good news: You can set aside pretax money to help pay for these items with reimbursement accounts, administered by PayFlex®. Even better news: You’ll also spend less on taxes.
Costco offers two reimbursement accounts. You can choose to enroll in one or both of them. The Health Care Reimbursement Account (HCRA) is for health care expenses, and the Dependent Care Assistance Plan (DCAP) is for dependent care expenses. You must enroll or re-enroll in these accounts every year, so make your elections for 2024 during Annual Enrollment, November 1–21.
♪ ♪ NARRATOR: Your health and the health of your family is a top priority at Costco. That’s why we are committed to providing you and your family with affordable benefits that help you receive quality care whenever needed.
One of those benefits are the reimbursement accounts available through PayFlex. Here’s everything you need to know about reimbursement accounts. There are two types of reimbursement accounts available to you as a Costco employee through PayFlex, the HCRA and the DCAP.
The HCRA or Health Care Reimbursement Account, allows you to set aside pre-tax dollars to reimburse yourself for eligible medical expenses, such as: Copays, Coinsurance and deductibles, Dental and vision expenses, Prescriptions, and over-the-counter items.
Annual Enrollment is the only time you can enroll in an HCRA account, and the HCRA must be re-elected every year if you want to continue your account. The DCAP, or Dependent Care Assistance Plan, allows you to set aside pre-tax dollars to reimburse yourself for qualified child and elder care expenses necessary for you and your spouse to work.
Funds can be used to pay for childcare for your dependents age 12 and younger, or for a spouse or dependent incapable of self-care. Examples of DCAP expenses are things like day care, before and after school care, nursery and pre-school, and in-home aids.
Please note that the DCAP cannot be used for dependent health care expenses. You need to enroll in the DCAP every year to continue your account, however, you can unenroll, change, or stop your enrollment whenever there is a change to your dependent care needs throughout the year.
Both types of accounts are funded by automatic pre-taxed payroll deductions from every paycheck. If you choose to enroll in one or both of the reimbursement accounts during Annual Enrollment, you will be prompted to choose how much money you would like to contribute for the plan year.
Funds will then be deducted pre-tax from your paychecks and deposited into these reimbursement accounts. While you can access the full amount of your annual HCRA election beginning January 1st, with the DCAP, you can only access the amount currently in your account at the time of your reimbursement request.
Each account has a funding limit set by the IRS. Before you enroll, take a look at your health care and dependent care expenses for the previous year, and think about needs in the coming year to get a sense of how much you would like to contribute.
Your needs may vary from year to year, so think carefully about the coming year’s needs before selecting your contribution level. It is important to remember that funds in both accounts are “use it or lose it” per IRS rules.
Only a small portion of your HCRA balance can roll over into the next plan year. This amount is determined annually by the IRS. Only participants who have an active HCRA as of December 31st are eligible for this rollover.
Any funds beyond the rollover amount are forfeited after the claim filing deadline. This is why it’s so important to consider your anticipated expenses for the coming year before selecting a contribution level for each account.
If you have a larger amount in your DCAP account than you expected as the end of the plan year approaches, you can take advantage of the grace period. The DCAP offers a grace period at the beginning of the following year where funds from the previous year can still be used.
Don’t forget to submit all your reimbursement claims by the filing deadline as any funds left over after this period will be forfeited. Be sure to calculate your contributions carefully. And that’s the basics.
If you have any questions or need more information, just visit Costcobenefits.com. Thanks for watching, and remember, we’re in this together.
The smart way to pay for health care and dependent care expenses
The Health Care Reimbursement Account (HCRA) and Dependent Care Assistance Plan (DCAP) allow you to pay for qualified expenses with money automatically deducted from your paycheck before taxes are calculated, lowering your taxable income. Here are answers to some common questions about these accounts.
What do they cover?
You can use your HCRA for eligible health care expenses that are not covered by your medical plan for you and your covered spouse and dependents. These expenses can include your plan deductible and copays, and many health care items and services, for example:
Your DCAP can be used to reimburse yourself for eligible dependent care expenses necessary for you and your spouse to work. Funds can be used to pay for childcare for your dependents age 12 and under, or to care for another family member incapable of self-care who lives in your home, such as a spouse, a child age 13 or older or a parent. Here are a few examples of eligible expenses:
Note: Your DCAP cannot be used to pay for dependent health care expenses.
How do they work?
When you enroll in an HCRA or DCAP, you choose an amount of money to put aside for the year based on what you think you’ll need to cover your expenses. This money is automatically taken out of each paycheck and deposited into your reimbursement account before payroll taxes are calculated.
You don’t pay taxes on this money. That means you save an amount equal to the taxes you would have paid on the money you set aside.
With an HCRA, you can pay for certain expenses directly from your account with the AutoPay function if you’re enrolled in a Costco medical plan. You can also use the HCRA debit card for eligible expenses, or pay upfront and submit a claim for reimbursement. See below for more details.
Autopay
HCRA
The HCRA will automatically reimburse certain medical, dental and vision plan expenses, including copays, coinsurance and deductibles.
debit card
HCRA
Use for eligible expenses at Costco Pharmacy or Online Pharmacy, Costco Optical Department and Costco Hearing Aid Center.
Claim form
HCRA & DCAP
Use for other eligible expenses, such as prescription drugs or over-the-counter drugs or items.
With a DCAP, you’ll need to pay upfront for an eligible item or service, then you’ll submit your receipt and a claim form through PayFlex to get reimbursed from your account.
Each reimbursement account has different rules and restrictions, as follows:
HCRA
Contribution amounts
You can contribute between $120 and $3,050 per year.
Enrollment
To enroll or re-enroll in an HCRA for 2024, you must make your election during Annual Enrollment.
Access
You can access the full amount of your annual HCRA election on January 1.
Rollover
Only a small portion of your HCRA balance can roll over to the next plan year. If you are enrolled in an HCRA for 2023, your rollover amount to use in 2024 is $610. This amount is determined each year by the IRS.
Use it or lose it
All expenses must occur during 2024. You forfeit any balance over the rollover limit that remains in your account after the claim filing deadline of April 30, 2025.
DCAP
Contribution amounts
You can contribute up to $5,000 per year ($2,500 if married and filing separately).
Enrollment
To enroll or re-enroll in a DCAP for 2024, you must make your election during Annual Enrollment. You can unenroll or change your DCAP election at any time during the year if there is a change in your dependent care needs.
Access
Access is limited to the amount currently in your account. You can get reimbursed up to the amount of your year-to-date contributions, not the entire annual amount you selected.
Grace period
You can use the funds you contributed for any services through March 15, 2024.
Use it or lose it
You can submit claims until April 30, 2025. Any funds remaining after the deadline will be forfeited.
How do I know how much to contribute?
Be very thoughtful when choosing how much money to contribute to your reimbursement accounts. Look at what you spent this year on health care and/or dependent care, and consider how that amount may change in 2024. Money left in reimbursement accounts (except for the allowed rollover amount for the HCRA and the grace period for the DCAP) will be forfeited after the claim filing deadlines.
How do I get started?
If you wish to participate in a reimbursement account for 2024, you must enroll during Annual Enrollment, which ends on November 21, 2023. Important note: If you enrolled in a reimbursement account for 2023, you will need to re-enroll in order to have a reimbursement account for 2024.
Visit the Enrollment Website located on Costcobenefits.com to make your reimbursement account elections. See the resources below for more information.
Smile! Or would you rather not? With virtual visits, FaceTime, and selfie-friendly apps like Snapchat and Instagram, we’re all spending more time staring at our faces, and, in turn, our teeth. According to Dentistry Today, that behavior has intensified self-esteem issues regarding crooked teeth. And it’s driven more adults to seek orthodontic care.
Luckily, orthodontia is increasingly affordable. There are innovative orthodontic solutions to help you get the smile you want. And your Costco dental plans are here to help, with orthodontia benefits* for you and your covered family members.
Braces have been the traditional form of treatment used by orthodontists for decades. Today’s streamlined braces come in a variety of models — stainless steel, tooth-colored ceramic and those that attach behind the teeth.
Clear aligners are plastic replicas of your teeth. Wearing them puts gentle pressure on your teeth, ever so slightly repositioning them. Aligners are virtually invisible and can be removed when you eat, brush and floss. Invisalign® was the only clear aligner treatment available for years. But today, there are many options.
While braces are often better for kids and teens, especially if they have a severe crossbite, overbite or underbite, neither option is necessarily better than the other. The choice is based on your goals and your lifestyle. But some clear aligner options do present advantages, both in terms of their convenience and cost.
At-home treatment
These days, monthly appointments to adjust your braces aren’t a requirement to get a better smile. New online clear aligner services allow people to complete treatment in the comfort of their homes. These options work best for people with simpler corrections.
Some of these services supply you with materials to do at-home impressions of your bite. Once done, you send them in to be reviewed by a licensed dentist or orthodontist. Others work through a certified dentist who creates a 3D image of the inside of your mouth. After your impressions are reviewed, you’re sent a customized set of aligners that will gradually shift your teeth into place.
This do-it-yourself option is a huge advantage for many people, especially those living in the 60% of U.S. counties with limited access to an orthodontist’s offices. But there are other advantages, including:
Cost. Traditional teeth-straitening solutions typically cost between $5,000–$9,000. These new orthodontic options, on average, cost between $2,000 and $3,000.
Duration. Depending on complexity and your lifestyle choices, these treatments can last, on average, 4–5 months. Treatments using metal braces can take years.
Support. Licensed dentists and orthodontists provide virtual support and oversight from beginning to end through dedicated, user-friendly apps.
Convenience. Supplies are delivered directly to your home.
Contact your dental plan to find out which options are available to you.
Save more with an HCRA
Only available on the Mainland and in Hawaii
With your Costco benefits, you can open a Health Care Reimbursement Account, or HCRA. This account, administered by PayFlex®, allows you to set aside pre-tax dollars to reimburse yourself for expenses your plan doesn’t cover. You can use your HCRA to pay eligible orthodontic expenses for yourself and your covered dependents. You can also download the PayFlex Mobile® app to manage your expenses on the go.
Budget for your dental costs
Costco offers additional financial well-being tools for all locations, such as SmartDollar®, a free digital program that can help you plan for major dental expenses. This program also offers one-on-one financial coaching to talk you through the process.
Your Costco dental plan and HCRA (where available) can make orthodontic treatment accessible for you and your covered family members. For resources to help, see below.
How do you get out of debt, stretch your paycheck, grow your savings, and prepare for retirement and other big-ticket life expenses? The smartest move you can make is to get started now with some practical guidelines from this short video.
When it comes to financial stability, the earlier you get there, the better off you’ll be in the long run. But you won’t have to do it alone. Your Costco benefits can help. They offer information that can help you develop healthy financial habits and ways to help you build your nest egg. For more information, check out the “Resources for you” section below.
Source:Healthwise. 5 ways to create financial stability.
Do you have children in day care? Are your out-of-pocket prescription drug costs increasing? Do your kids need braces? Does your elderly parent require a caregiver?
These expenses can add up. But with a reimbursement account, administered by PayFlex®, you can set aside pretax dollars and pay yourself back through a Health Care Reimbursement Account or a Dependent Care Assistance Plan.* Just be sure to make your 2023 elections during Annual Enrollment, November 1–22, 2022.
To enroll or re-enroll in a HCRA, you must make your annual election during Annual Enrollment. You can contribute between $120 and $3,050 per year. The money you elect will be taken out of your paycheck and deposited into your reimbursement account before payroll taxes are calculated.
You can then use the amount you set aside to reimburse eligible health care expenses incurred by you, your spouse and your eligible dependents. To be eligible for reimbursement, expenses must be incurred during the year in which you elect to participate.
After submitting your expense receipts through PayFlex, you’re paid back from your reimbursement account. You can access the full amount of your annual HCRA election on January 1, 2023.
Dependent Care Assistance Plan (DCAP)
The DCAP lets you set aside pretax dollars to reimburse yourself for eligible child (under age 13) and elder care expenses necessary for you and your spouse to work. Here are just a few examples:
To enroll, or re-enroll, in a DCAP, you can either make your annual election during Annual Enrollment or when you experience a change in your dependents’ expenses during the year. You can contribute up to $5,000 per year ($2,500 per year if you’re married and filing separately) to a DCAP for work-related dependent care expenses. To be eligible for reimbursement, expenses must be incurred between January 1 of the year you elect to participate and March 15 of the following year. For example, if you elect a DCAP account for 2023, you would have until March 15, 2024 to incur eligible expenses.
The money you elect is taken out of your paycheck and deposited into your reimbursement account before payroll taxes are calculated. Since your payroll taxes are then based on a lower gross amount, the amount of taxes deducted from your paycheck is lower, too.
After submitting your expense receipts through PayFlex, you’re paid back from your reimbursement account. With DCAP, however, you can only access the amount currently in your account at the time of your reimbursement request, not the entire annual amount you elected.
Got money in a PayFlex account? Use it or lose it!
If you have a 2022:
You can carry over into 2023:
Health Care Reimbursement Account (HCRA)
A maximum of$570
Dependent Care Assistance Plan (DCAP)
$0
You have until April 30, 2023, to submit reimbursement claims for eligible expenses incurred between January 1 and December 31, 2022.
To enroll or re-enroll in an HCRA or a DCAP for 2023, visit Costcobenefits.com during Annual Enrollment, November 1–22, 2022. See the resources below for more information.
