Posted on 11/10/2008 6:16:43 PM PST by RKBA Democrat
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.
That was the case for me - the record keeping (and confusing demands, rules, and regulations) kept me from coming back for a second year.
Does all this apply if you buy your health insurance on your own?
I think we lose unspent monies as well, which is why I try to figure out what I’m going to spend and keep my contribution just a little under that. I’m on medications that I refill once a month, so I’m about 90% sure of what I’ll spend from year to year on co-pays. Anything extra, we’re allowed to spend on over the counter meds, etc., so it works out.
“Does all this apply if you buy your health insurance on your own?”
Yes, if your employer offers an FSA. It’s a win/win for the employer as the FSA deductions are taken before social security taxes are taken out of your pay. So they’re saving 7%+ on whatever you choose to contribute. Unfortunately, I don’t think your health care premiums can be applied against your account. But all your co-pays, deductibles, prescriptions, OTC drugs, etc. should be eligible. There are some different rules if you have one of those special policies with an HSA.
If you own your own business, you can go through a HR/payroll contractor to set one of these up.
(disclaimer: I’m not an accountant or HRO type. See your accountant or HRO professional if you need assistance)
Those are IRS rules and apply to everyone, but since the government steals so much of our money post-tax, I figured we only have to use half of it to break even. We can do that just with our prescription co-payments.
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.
Unfortunately, the total is only 5K, whether you have 1 kid or 5.
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*
“Wal-Mart probably does that as well?”
Yes they do, but I don’t remember what the code is.
“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*”
I can’t say I’d be surprised if they tried. Part of the reason why it’s important to spread the word about these is to make sure that there are a whole lot of folks taking advantage of these FSA plans when they’re offered. It’s like the home mortgage interest deduction; it would be political suicide to target it because so many people take advantage of it.
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