Morning Coffee

[clark123456]

If you extra FSA money, get out there and spend it!  You can buy OTC drugs with it, but most of them require you have a prescription.

I am trying to spend my excess FSA money, but spend it wisely (I.e., stuff I will actually use).

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Does that roll over? Or expire @ the new year? I’ve thought about starting one given my propensity for Doctors

The government allows $500 to roll over per year, and so does my FSA management company (payflex).

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My understanding is it doesn't actually rollover.  It can be used after the end of the year but only for expenses incurred during the year they were withheld for. It's a use it or lose it deal so finding ways to use it is smart Clark.  Even back to January, missed submissions you paid out of pocket can be submitted. We have a dedicated debit card that makes it very easy to manage. Maybe everybody does?

"No. According to the IRS ruling, “The carryover of up to $500 may be used to pay or reimburse medical expenses under the health FSA incurred during the entire plan year to which it is carried over.”

My understanding as well.

My FSA has a debit card option.  I’ve used it in the past.

See if this makes it sound like a rollover:  https://www.google.com/amp/s/fsastore.com/learn/fsa-grace-period-500-rollover-2498881802.amp.html

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[Blue J]

Laura just explained to me that an HSA rolls over but an FSA does not. Well not, except as Tony explained.

[clark123456]

Laura just explained to me that an HSA rolls over but an FSA does not. Well not, except as Tony explained.

Don't tell Laura I said so, but I think she's not 100% correct!

I believe the confusion comes from the three different capabilities of FSA (not to be confused with an HSA):  Old rules, 2.5 month rule, and $500 dollar rule, plus some additional sub-rules, depending on who administers your FSA.

I am on the new rule that allows $500 'roll-over'.  The government allows $500 to roll-over, and my FSA administrator allows $500 to roll-over.  I do not have a debit card

This website is a good read to understand the nuances in the options for FSAs:  https://fsastore.com/learn/fsa-grace-period-500-rollover-2498881802.html

This one is great too, but don't do like someone here (@Doug) and copy the answer to a different question:  http://amben.com/demos/marketing/FSA_Employer_RolloverFAQ.pdf



and since lack of knowledge (aka, ignorance) is substantial regarding FSAs vs HSAs, here is something I found useful for understanding the differences:  https://www.patriotsoftware.com/payroll/training/blog/fsa-vs-hsa-what-s-the-difference/

[lt99ls1]

My FSA definitely rolls over.  I had to roll over $500 from last year and spent it on bills acquired this year.

[DOUG]

Laura just explained to me that an HSA rolls over but an FSA does not. Well not, except as Tony explained.

Don't tell Laura I said so, but I think she's not 100% correct!

I believe the confusion comes from the three different capabilities of FSA (not to be confused with an HSA):  Old rules, 2.5 month rule, and $500 dollar rule, plus some additional sub-rules, depending on who administers your FSA.

I am on the new rule that allows $500 'roll-over'.  The government allows $500 to roll-over, and my FSA administrator allows $500 to roll-over.  I do not have a debit card

This website is a good read to understand the nuances in the options for FSAs:  https://fsastore.com/learn/fsa-grace-period-500-rollover-2498881802.html

This one is great too, but don't do like someone here (@Doug) and copy the answer to a different question:  http://amben.com/demos/marketing/FSA_Employer_RolloverFAQ.pdf



and since lack of knowledge (aka, ignorance) is substantial regarding FSAs vs HSAs, here is something I found useful for understanding the differences:  https://www.patriotsoftware.com/payroll/training/blog/fsa-vs-hsa-what-s-the-difference/

You are correct. Changed for 2014.  I never heard this that I recall so I belief we kept the grace period instead. It's one or the other.

Effective immediately, employers that offer FSAs that don't include a grace period will have the option of allowing employees to roll over up to $500 of unused funds at the end of this plan year.

An employer cannot offer a FSA carryover provision and an FSA grace period at the same time, officials said.

For nearly 30 years, employees eligible for FSAs have been subject to the use-it-or-lose-it rule, meaning any account balances remaining unused at the end of the year are forfeited. 

[clark123456]

Laura just explained to me that an HSA rolls over but an FSA does not. Well not, except as Tony explained.

Don't tell Laura I said so, but I think she's not 100% correct!

I believe the confusion comes from the three different capabilities of FSA (not to be confused with an HSA):  Old rules, 2.5 month rule, and $500 dollar rule, plus some additional sub-rules, depending on who administers your FSA.

I am on the new rule that allows $500 'roll-over'.  The government allows $500 to roll-over, and my FSA administrator allows $500 to roll-over.  I do not have a debit card

This website is a good read to understand the nuances in the options for FSAs:  https://fsastore.com/learn/fsa-grace-period-500-rollover-2498881802.html

This one is great too, but don't do like someone here (@Doug) and copy the answer to a different question:  http://amben.com/demos/marketing/FSA_Employer_RolloverFAQ.pdf



and since lack of knowledge (aka, ignorance) is substantial regarding FSAs vs HSAs, here is something I found useful for understanding the differences:  https://www.patriotsoftware.com/payroll/training/blog/fsa-vs-hsa-what-s-the-difference/

You are correct. Changed for 2014.  I never heard this that I recall so I belief we kept the grace period instead. It's one or the other.

Effective immediately, employers that offer FSAs that don't include a grace period will have the option of allowing employees to roll over up to $500 of unused funds at the end of this plan year.

An employer cannot offer a FSA carryover provision and an FSA grace period at the same time, officials said.

For nearly 30 years, employees eligible for FSAs have been subject to the use-it-or-lose-it rule, meaning any account balances remaining unused at the end of the year are forfeited.

Thanks,  Trump

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[DOUG]

Switch to an HSA if you can.

Not the best for everyone. 

For a low medical cost single guy it is probably by far the best but every program is different. 

In our program the HSA comes with higher individual and family deductibles and max Out of Pocket so the FSA with lower OOP max limits and higher benefits is a much better deal in that case.   Company even gives $2000 to cover most of it too but many expenses you can use the HSA for don't apply to the deductible so you can be out of $ and still well short of the deductibles/OOP),

The HSA plan moves the middle ground risk to the individual and raises the threshold for the plan to kick in 100%.  Costs you less if you don't have expenses, more if you do.

[ranier1315]

Switch to an HSA if you can.

Not the best for everyone. 

For a low medical cost single guy it is probably by far the best but every program is different. 

In our program the HSA comes with higher individual and family deductibles and max Out of Pocket so the FSA with lower OOP max limits and higher benefits is a much better deal in that case.   Company even gives $2000 to cover most of it too but many expenses you can use the HSA for don't apply to the deductible so you can be out of $ and still well short of the deductibles/OOP),

The HSA plan moves the middle ground risk to the individual and raises the threshold for the plan to kick in 100%.  Costs you less if you don't have expenses, more if you do.

All depends on your plan and what your company has set up but my HSA has no rollover issues, I haven’t paid a dime out of take home in 3 years and any costs have come out of my HSA which this year is 18% up on investments.  I have ~10k in medical expenses this year and my HSA covered the $2500 deductible with almost completely investment gains.  I’ve had FSAs in the past and this is way better for me.  In 2 more years when I have 5 years and fully vest, I’ll have another 20k+ nest egg instead of $0 I’d have from an FSA that I clear out every year.

All of the above is great if your employer gave you an option. My city moved to an HSA plan four years ago and made the PPO plan so expensive that the HSA was the only real option. Pair that with a new diagnosis of type 2 diabetes and welcome to spending $6000 of your own hard earned money every year. Good news is you get to start with a new bill of $6000 every year. Get diagnosed with cancer, be put on disability and not be able to earn your normal salary and see how that goes for you.... Thanks Obama. Before the "affordable healthcare" plan I had a $20 co-pay and only paid $80 a month for insurance. FML.

[DOUG]

Coldest Christmas in 7 years or so. Christmas is definitely different with adult children lol. 

We're headed south to warmer weather in Costa Rica.

[Blue J]

I hear its suppose to snow on Sunday.

[DOUG]

Long day but worth it

[patman]

Helped a buddy weld some artec brackets together and tack them to the axle tubes. JKU with dana 80's front and rear. Running 42 tsl

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