Just a quick note to say that we’ve drained our flexible spending account (FSA) for 2007. Given that we set aside $1200 pre-tax dollars, we saved somewhere in the neighborhood of $475 this year (33% federal tax bracket + 6.5% state tax bracket). While going through our open enrollment paperwork, I decided to bump our FSA contributions up to $1500 for next year. Given how things have gone this year, we should easily hit that mark. Nonetheless, I’m reticent to push things too far given the use-it-or-lose-it nature of flexible spending accounts.
A few random notes… First off, we’re going to get an FSA debit card this year, which means we won’t have to file paperwork to get reimbursed (as long as we remember to actually use the card). Also, I should point out that we actually closed out our FSA at a profit last year since I switched jobs mid-year. Oddly enough, this is exactly how FSAs are supposed to work. If you don’t spend your money, your employer keeps the difference. If you spend it faster than you put it in and then quit your job, you keep the difference.