Health Flexible Spending Accounts?

[Leverage]

Does anyone have any thoughts or experince with FSA?

My program offers them and it seems like they offer some tax incentive and help stretch the dollar on your out of pocket expenses.

Anything I should beware of?

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[Sol Rosenberg]

Just that you must "use or lose" everything that you contribute, so pick your contribution carefully...

Otherwise, they are a great way to get some money back from Uncle Sam for your out of pocket healthcare costs.

 

[AndyFromMDTAXES]

FSA's are a great way to pay for certain personal expenses with pre-tax dollars. The two most common items to pay through an FSA is unreimbursed medical expenses and dependent care expenses.

Here's why FSA's are so great. Let's say you're in the 25% federal tax bracket, live in a state with a 5% tax, and are still paying the full FICA and Medicare taxes. By taking advantage of the FSA, you can allocate $100 of your salary to pay $100 of eligible expenses through the FSA. The only other option is to earn $166, pay $66 in taxes, and end up with $100 to pay your bills.

So with an FSA, $100 = $166. It's a total value play.

 

[Leverage]

thanks for the help.

Now just need to figure out a good estimate of expenses.

 

[AndyFromMDTAXES]

Keep in mind that most FSA plans give you until March of the following year to spend your FSA money for the current year. So there is a little margin of error with these "Use it or lose it" accounts.

You should ask the benefits people at your employer's human resources office what the due date is for spending your annual FSA money.

 

[Aznfarmerboi]

I think FSA is something everybody should participate in. I also heard besides health insurance, copays, and stuff, they supposly cover things like treadmills.

 

[mshheaddoc]

I use my FSA for all of my doctor's copays, prescriptions, OTC meds. For me its quite a bit a year. If you won't use it that much I might only budget a little. I maxed mine this year and I will use every dime of it. Good part of it is to save EVERY receipt you purchase things with. My company has asked for proof for some of my high dollar scripts.

 

[southerndoc]

I signed up for a high deductible insurance plan for my attending job. I plan to contribute to a health savings account. You can contribute up to $2,300/year (or is it $2,600?), all tax deductible, and it doesn't follow a use it or lose it type system.

 

[aasst15]

It sucks, I have 2 kids had FSA through the university as a full time employee, started a PhD program has a stipend (TA) my school does not make FSA available to students (health or otherwise). I want to change this and at least file grievance with the appropriate channels. I'd like to know programs that offer this to their students.