I have been doing it for three years now, and I highly recommend it. It’s about the closest we can get to a true tax break for medical expenses.
Always, always, always take your income pre-tax....whenever possible!
If the money rolled over into the next year, it might be a good idea. You forfeit whatever money (your own money) you have left in it at the end of the year. At least thats the case with my company’s plan.
They just turn around and screwjay us with the Alternative Minimum. But we do it as a sort of insurance so that we don’t have to dip in to ready cash to cover our $7500 deductible if we have a big medical event.
We’ve used one for years...as soon as it became available. I do the record-keeping, etc. That’s one reason most don’t want to be bothered, I suppose....
I have it too, and I find it very useful. I am wondering how long it is going to be legal to have it.
We’ve used these accounts for years. They’ve gotten easier to use, with most of our co-pays being submitted electronically by the care provider for FSA reimbursement. With two sons in orthodontic treatment, this has been a great help. Their expenses are only partly covered by dental insurance, and the payment schedule is known well in advance.
This is a really good deal and we’ve used ours for the births of both of our sons. We maxed out our contribution with our first son who had some medical issues due to prematurity.
I worked in HR for a few years and the problem with the flex spending account is that it’s confusing to employees. I tried to explain it as simply as I could but people would still not understand. They didn’t get the “use it or lose it”. I’m so glad I’m a stay at home mom now!
My favorite is you dont say SS payroll taxes on the money. That is rare.
Is this used in place of traditional medical coverage, or in addition to it?
The real secret to FSA’s is child care. $5k a year for child care, tax free.
A shocking number of employees do not take advantage of these plans.
Lasik is big deal with this stuff on the medical side, as are lots of other optional, non-insured medical procedures.
Does all this apply if you buy your health insurance on your own?
Reading glasses, wraps and braces for knees, elbows, etc, first aid supplies and many more things you should always have on hand are covered by FSA. It's your money and now's a good time to get ready for hard times ahead.
The reason I went back to work full time while Husband got his business off the ground was that we needed affordable health insurance.
My company GIVES me $1,300.00 a year in a FSA, and I kick in $50 a month on top of that. Our health insurance is very affordable and very inclusive at $208.92 a month.
It’s November, and we’ve used up every dime of it, because my husband is on some expensive meds due to his two spinal fusions, and we both got glasses and contacts this year.
It really helps our budget.
And, in case anyone didn’t know, there’s quite a few over-the-counter things they’ll reimburse you for as well. If you shop at Walgreen’s, there will be a little “F” next to purchases that can be reimbursed through your FSA. Wal-Mart probably does that as well?
Sadly, I’m sure CONGRESS will eventually find a way to tax us on this and ruin one of the few perks we have left in the Free Market. *Rolleyes*