Comments on: Let’s End Flexible Spending Accounts

By: hrguy1952

hrguy1952 — Tue, 13 Oct 2009 19:22:26 +0000

I am a Human Resource manager for a 100 person business with choices of 3 great medical plans. Majority of our employees use the flexible spending account to save some tax money- but more important to help them spread their anticipated deductibles and out of pocket costs across the entire year instead of getting hit with these in the beginning of the year. Yes – there are hassles with debit cards and providing receipts to prove they were IRS approved purchases – but the employees like the option to do this. Don't hurt all these regular blue collar workers by taking away this benefit.

By: Jeremy Miller

Jeremy Miller — Fri, 09 Oct 2009 02:05:36 +0000

While I agree that there is some over the counter waste of end of year use it or lose it funds, it is important to realize that people can save up to $1,500 a year on medically related expenses. Ending FSA's to pay for medical reform is really just eliminating a tax break- or taxing taxpayers to pay for another separate benefit.

Unfortunately, eliminating these accounts would end up moving tax savings from people that already have a private health insurance account (over 90% of FSA holders) to people that don't have health insurance. While Obama says a new penny wont be spent to reform, i doubt that eliminating these accounts to save funds would fall under this promise

By: DLS

DLS — Sat, 26 Sep 2009 18:32:26 +0000

“Use it or lose it” does, indeed make it a gimmick, just another kind of silly hoop people can be hoped to jump through like circus-act or laboratory experiemental animals. (Same in general for GOP and Dem tax credits.)

By: HemmD

HemmD — Sat, 26 Sep 2009 13:38:50 +0000

Sorry Joe

Some of us use these to squeeze every last bit of pre-tax advantage out of them. My wife and I have a $3000 account each year, but as of Aug 15th, we only had $114 remaining. We "wasted" it on dental crowns and prescriptions running a couple hundred a month.

If you don't know what your upcoming medical expense is going to be, don't sign up for FSAs. For those of us on the medical treadmill, however, it provides money immediately at the beginning of each year and let's us make payments each month. Maybe on Jan. 15th you can come up with $1200 for dental work, but for a poor schmo like me, not so much.

By: Dr J

Dr J — Sat, 26 Sep 2009 03:53:49 +0000

You said it, Joe. I'm at a loss to understand the rationale for FSAs. Whereas HSAs encourage the sensible habit of saving toward future medical expenses, FSAs with their use-it-or-lose-it clause encourage…what…balancing your illnesses so you're equally ill every year? Taking the injuries you have coming on a regular basis so they don't accumulate? On what planet does this make sense?