Comments on: Flexible Spending Account Maxed out for 2006 http://www.fivecentnickel.com/2006/06/21/flexible-spending-account-maxed-out-for-2006/ personal finance tips, tricks, and commentary Sat, 21 Nov 2009 22:51:28 -0500 http://wordpress.org/?v=abc hourly 1 By: broknowrchlatr http://www.fivecentnickel.com/2006/06/21/flexible-spending-account-maxed-out-for-2006/comment-page-1/#comment-78217 broknowrchlatr Sun, 24 Jun 2007 14:14:21 +0000 http://www.fivecentnickel.com/2006/06/21/flexible-spending-account-maxed-out-for-2006/#comment-78217 My employer is like that too, anything spent but not earned has to get paid back when you leave. I go with an HSA myself. I think that they should get rid of MSAs and FSAs and allow HSAs for anyone. My employer is like that too, anything spent but not earned has to get paid back when you leave.

I go with an HSA myself. I think that they should get rid of MSAs and FSAs and allow HSAs for anyone.

]]> By: Susan http://www.fivecentnickel.com/2006/06/21/flexible-spending-account-maxed-out-for-2006/comment-page-1/#comment-9527 Susan Thu, 22 Jun 2006 15:40:29 +0000 http://www.fivecentnickel.com/2006/06/21/flexible-spending-account-maxed-out-for-2006/#comment-9527 Hmm - the FSA contract I have to sign with my employer says that if I quit and have already been reimbursed more money than has been taken out of my paycheck I have to repay them. Seems like different employers have different rules. My husband's compnay only lets him put $5,000 in, for either medical expenses OR daycare. My employer will let us put $5,000 for EACH. Hmm – the FSA contract I have to sign with my employer says that if I quit and have already been reimbursed more money than has been taken out of my paycheck I have to repay them.

Seems like different employers have different rules. My husband’s compnay only lets him put $5,000 in, for either medical expenses OR daycare. My employer will let us put $5,000 for EACH.

]]> By: mapgirl http://www.fivecentnickel.com/2006/06/21/flexible-spending-account-maxed-out-for-2006/comment-page-1/#comment-9419 mapgirl Wed, 21 Jun 2006 21:41:30 +0000 http://www.fivecentnickel.com/2006/06/21/flexible-spending-account-maxed-out-for-2006/#comment-9419 I always underallocate my dollars. In the past, I have lost money and I have also stuck it to my employer. I felt guilty about the last part, but not really. I'm sure on balance of things, I have underutilized my funds overall. All I can say is that I'm glad I bumped it up a lot this year and only am sorry I didn't bump it up some more. I have a post I am hesitant to publish about my FSA, but overall, I'm really glad I have it and the tax savings for me is pretty significant. I always underallocate my dollars. In the past, I have lost money and I have also stuck it to my employer. I felt guilty about the last part, but not really. I’m sure on balance of things, I have underutilized my funds overall.

All I can say is that I’m glad I bumped it up a lot this year and only am sorry I didn’t bump it up some more. I have a post I am hesitant to publish about my FSA, but overall, I’m really glad I have it and the tax savings for me is pretty significant.

]]> By: Chris Hake http://www.fivecentnickel.com/2006/06/21/flexible-spending-account-maxed-out-for-2006/comment-page-1/#comment-9372 Chris Hake Wed, 21 Jun 2006 17:16:56 +0000 http://www.fivecentnickel.com/2006/06/21/flexible-spending-account-maxed-out-for-2006/#comment-9372 My employer is going to start this type of program in 2007, so I am looking forward to seeing how they roll it out. I have heard a lot of pro's and con's, so I am excited to add my own opinion. My employer is going to start this type of program in 2007, so I am looking forward to seeing how they roll it out. I have heard a lot of pro’s and con’s, so I am excited to add my own opinion.

]]> By: Dan http://www.fivecentnickel.com/2006/06/21/flexible-spending-account-maxed-out-for-2006/comment-page-1/#comment-9369 Dan Wed, 21 Jun 2006 16:59:40 +0000 http://www.fivecentnickel.com/2006/06/21/flexible-spending-account-maxed-out-for-2006/#comment-9369 I hate the way these plans work. My wife and I were expecting a baby in July, so last November we budgeted the FSA dollars to pay for the birth. Then in January, we miscarried. So even though we had already committed to a certain amount for the year, I had to beg my employer to drop our FSA dollars down to a more reasonable level since there was no way we could spend that kind of money on our own. Thankfully, my employer helped us out. But then we got pregnant again. This one seems to be going fine. And guess when the baby's due? December 27. Which means we essentially won't be able to use flex money to pay for it, because either 1) the baby will come in 2006, in which case our flex dollars are already used up, or 2) the baby comes in early 2007, but we have to commit to our 2007 FSA allocation in November. My only options are to either forget about using flex dollars for the birth, or beg my employer (again) to allow us to not commit to using flex dollars until 1/1/07. I hate the way these plans work. My wife and I were expecting a baby in July, so last November we budgeted the FSA dollars to pay for the birth. Then in January, we miscarried. So even though we had already committed to a certain amount for the year, I had to beg my employer to drop our FSA dollars down to a more reasonable level since there was no way we could spend that kind of money on our own. Thankfully, my employer helped us out.

But then we got pregnant again. This one seems to be going fine. And guess when the baby’s due? December 27. Which means we essentially won’t be able to use flex money to pay for it, because either 1) the baby will come in 2006, in which case our flex dollars are already used up, or 2) the baby comes in early 2007, but we have to commit to our 2007 FSA allocation in November.

My only options are to either forget about using flex dollars for the birth, or beg my employer (again) to allow us to not commit to using flex dollars until 1/1/07.

]]> By: Dus10 http://www.fivecentnickel.com/2006/06/21/flexible-spending-account-maxed-out-for-2006/comment-page-1/#comment-9349 Dus10 Wed, 21 Jun 2006 15:37:11 +0000 http://www.fivecentnickel.com/2006/06/21/flexible-spending-account-maxed-out-for-2006/#comment-9349 Kira: It is my understanding that forfeited funds must stay in a holding account for other FSA funds. So, if employees let their funds expire, the money stays in that account, and the employer does not actually have to fund it with your funds until they have exceeded the funds left from the prior year. So, you are having funds withheld that may just "dissappear" because there was money to cover it already. FSA's are nice, but they really should have a provision similar to HSA's, which do allow you to accumulate funds and invest them for growth. These funds can be saved for retirement, but I am not sure if they must still be used for medical expenses, or if you can use them for general income. In any event, you are more likely to have more medical expenses later, so it is nearly a moot point. Kira: It is my understanding that forfeited funds must stay in a holding account for other FSA funds. So, if employees let their funds expire, the money stays in that account, and the employer does not actually have to fund it with your funds until they have exceeded the funds left from the prior year. So, you are having funds withheld that may just “dissappear” because there was money to cover it already.

FSA’s are nice, but they really should have a provision similar to HSA’s, which do allow you to accumulate funds and invest them for growth. These funds can be saved for retirement, but I am not sure if they must still be used for medical expenses, or if you can use them for general income. In any event, you are more likely to have more medical expenses later, so it is nearly a moot point.

]]> By: Kira http://www.fivecentnickel.com/2006/06/21/flexible-spending-account-maxed-out-for-2006/comment-page-1/#comment-9343 Kira Wed, 21 Jun 2006 15:15:26 +0000 http://www.fivecentnickel.com/2006/06/21/flexible-spending-account-maxed-out-for-2006/#comment-9343 What happens to the forfeited money, do you know? Does the company just get to keep it? That seems very wrong and bad. What happens to the forfeited money, do you know? Does the company just get to keep it? That seems very wrong and bad.

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