Author Topic: Should I put $500 into an FSA?  (Read 5941 times)

ender

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Should I put $500 into an FSA?
« on: November 20, 2013, 06:08:44 PM »
Sounds like FSA plans for 2014 allow you to rollover up to $500 - it seems like I might as well put this into it.

Is there any reason I shouldn't? I have to buy contacts which are about $250 a year so I unfortunately WILL burn through a good chunk of it. Currently just use HSA funds for this.

schimt

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Re: Should I put $500 into an FSA?
« Reply #1 on: November 20, 2013, 08:06:51 PM »
What advantage does an fsa have over and hsa?

madage

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Re: Should I put $500 into an FSA?
« Reply #2 on: November 20, 2013, 08:33:08 PM »
Sounds like FSA plans for 2014 allow you to rollover up to $500 - it seems like I might as well put this into it.

Is there any reason I shouldn't? I have to buy contacts which are about $250 a year so I unfortunately WILL burn through a good chunk of it. Currently just use HSA funds for this.

It's better to burn through your FSA than it is your HSA. Funds in FSA are not portable and not investable, but your HSA is. It's always good to fund an FSA to cover sure-thing expenses for the tax savings.

Are you sure your plan will allow you to roll over? The IRS is giving plans the option of the grace period (use your FSA funds through March 15 of the next year) or allowing participants to roll over up to $500. That doesn't mean your plan necessarily will allow it.

schimt

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Re: Should I put $500 into an FSA?
« Reply #3 on: November 21, 2013, 05:03:54 AM »
Also, have you read this post by the mad fientist about HSA. there is a link within there to his original HSA post which i also recommend reading.

http://www.madfientist.com/hsa/

madage

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Re: Should I put $500 into an FSA?
« Reply #4 on: November 21, 2013, 09:36:55 AM »
Also, have you read this post by the mad fientist about HSA. there is a link within there to his original HSA post which i also recommend reading.

http://www.madfientist.com/hsa/

That is a great link! I'm going to share that with the colleagues I've convinced to try out my company's HDHP+HSA option.

schimt

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Re: Should I put $500 into an FSA?
« Reply #5 on: November 21, 2013, 09:45:02 AM »
The Mad Fientist actually speaks about it in one of his podcasts where he is being interviewed by the radical personal finance podcast (sadly no longer broadcasting, but mad fientist posted the interview in his own podcasts), if your colleagues listen to podcasts.

aglassman

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Re: Should I put $500 into an FSA?
« Reply #6 on: November 21, 2013, 10:01:39 AM »
FSA is great if you know you have some fixed costs for the year.   Just think of it as getting a permanent coupon for %10-35 (depending on your income tax bracket). Contacts, childcare, OTC medicine, stuff like that.  $500 dollars is a totally reasonable amount to put in.  Just remember to use it when possible!

clarkm04

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Re: Should I put $500 into an FSA?
« Reply #7 on: November 21, 2013, 10:43:11 AM »
Definitely check with your plan administrator before doing anything.

My work only offers a FSA.  The new rules (or at least my understanding of them) allows employers to have either the $500 rollover or March 15 extension for employees.  Work is staying with the 3/15 extension since you can carry over more than $500 dollars into the next year.  As long as you spend it or have a receipt dated 3/15 or sooner, you're good.

My wife is currently on a HDP with a HSA.  We max that too the hilt and then utilize my FSA for all of our medical needs.

I think this situation is great since the FSA money has to be spent while we want to keep the HSA locked up.

We just started this tactic with her insurance (she was a different traditional insurance plan before), so we aren't at the point of being able to invest it, but we're both excited for the future when we hit that mark.


TLV

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Re: Should I put $500 into an FSA?
« Reply #8 on: November 21, 2013, 11:06:21 AM »
Definitely check with your plan administrator before doing anything.

+1.

This new feature of FSAs is optional for employers - they can implement it to make their employees happy, but they don't have to.

Frankies Girl

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Re: Should I put $500 into an FSA?
« Reply #9 on: November 21, 2013, 12:08:45 PM »
My company just announced our open enrollment this past week, and I am finally taking the plunge and putting in some $ to cover things like doctor co-pays and prescriptions. I went and talked to a coworker about how it works and it sounds pretty sweet - and we have the credit card option where you don't have to fill out paperwork; just swipe a card at the doctor or pharmacy.

clarkm04

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Re: Should I put $500 into an FSA?
« Reply #10 on: November 21, 2013, 12:18:43 PM »
My company just announced our open enrollment this past week, and I am finally taking the plunge and putting in some $ to cover things like doctor co-pays and prescriptions. I went and talked to a coworker about how it works and it sounds pretty sweet - and we have the credit card option where you don't have to fill out paperwork; just swipe a card at the doctor or pharmacy.

Make sure to save your receipts and your health care provider Explanation of Benefits (EOB).  Your FSA provider will audit some charges and you have to submit documentation or they won't cover it.

I found this out the hard way.  Now, I have a file for all my Blue Cross EOBs to scan and post for documentation.

The credit card works great!  Totally convenient as long as you hold onto EOBs.

Frankies Girl

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Re: Should I put $500 into an FSA?
« Reply #11 on: November 21, 2013, 03:32:11 PM »
My company just announced our open enrollment this past week, and I am finally taking the plunge and putting in some $ to cover things like doctor co-pays and prescriptions. I went and talked to a coworker about how it works and it sounds pretty sweet - and we have the credit card option where you don't have to fill out paperwork; just swipe a card at the doctor or pharmacy.

Make sure to save your receipts and your health care provider Explanation of Benefits (EOB).  Your FSA provider will audit some charges and you have to submit documentation or they won't cover it.

I found this out the hard way.  Now, I have a file for all my Blue Cross EOBs to scan and post for documentation.

The credit card works great!  Totally convenient as long as you hold onto EOBs.

Good to know! I already save the receipts as we're itemizing on our tax returns, so I'll just make sure to keep that up next year.


clarkm04

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Re: Should I put $500 into an FSA?
« Reply #12 on: November 21, 2013, 03:43:01 PM »
As long as you have those and EOBs, you are golden.  If not, they will deny payment.  I lost an EOB and had to contact BCBS. They faxed me it and the FSA provider couldn't read it.  Had it mailed from BCBS and submitted this new copy to FSA provider.

A ton of silly work and all my fault!

Now, BCBS and SO's health care provider have EOBs online, so it's easy to download for verification.

You'll love the CC option.