Flexible Spending Account?

the_Grinch

So I had my taxes done today and let's just say I kicked some butt Anyhow, my new company offers a Flexible Spending Account and I am thinking of signing up. I am only looking to put about $100 a month in (I get paid monthly) since I got killed last time I had to go to the dentist, but I have some questions. I know it is use it or lose it, but are you taxed on the funds you don't use? Also, do you have one? If you do, did you find it was worth doing?

vCole

I believe the FSA is 100% tax free, regardless of using it or not.

kriscamaro68

I have one and it worked out great for when my wife had our son. I only put $12 a paycheck in right now so $24 a month. The nice thing is the full amount is available immediately to use. You can always add more but you cant ever pull back the amount you are putting in for the year so put in less then if you see that you need more you can always add it later.

nosoup4u

Signed up for an HSA a few years ago, my company contributes 1k a year into it.

While it's pre tax money, you need to make sure to input your 1099-SA and save any medical related receipts for the years you keep your return for possible audits.

the_Grinch

Thanks everyone! I am going to sign up next month as I need some dental work and only a portion will be covered.

veritas_libertas

I wouldn't do it unless it's an HSA. You lose everything you don't use with an the FSA at the end of the year. HSAs are entirely different, and you can keep contributing to it yearly tax free.

the_Grinch

Sadly, my company doesn't provide a HSA I'm think at the very least it might encourage me to go to the doctor more. I haven't seen my doctor since probably 2006....

kriscamaro68

Thats why I say start low with your contributions that way you dont loose your money at the end of the year. We spent all of ours last year and could have used more with the baby but, it was close to the end of the year that we needed it so it wasnt worth it.