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60 votes

Is it mandatory to have health insurance?

The individual mandate is still in effect for 2018, which means you have to have qualifying health coverage or pay a fine--I can't find the penalties for 2018 but for 2017 it was the greater of 2.5% ...
  • 14.7k
46 votes

Are the HSA and FSA bad deals?

So who are these accounts for? What kind of person would look at an FSA or HSA account and think, "that's a great deal"? FSA: Those who have recurring expenses, or planned procedures this ...
  • 46.4k
20 votes

Laid off. Had FSA overages that I wasn't aware of. Can they collect?

Possibility 1: Reimbursement exceeds contributions You elect to contribute $1,200 to the FSA ($100 a month). In February, you submit $2,000 worth of expenses. You are reimbursed $1,200. In March, ...
  • 5,077
20 votes

Laid off. Had FSA overages that I wasn't aware of. Can they collect?

It depends on what you mean by “overages.” FSA plans have a feature called “uniform coverage.” When you sign up for the plan with your employer, you are signing up for coverage up to a certain dollar ...
18 votes

Is it mandatory to have health insurance?

I see this sort of misconception flying around. "Well the health insurance takes my money, makes a profit, and pays me only if I need it, otherwise I 'lose' money. Clearly, I would be better off ...
  • 1,121
17 votes
Accepted

What is the rationale behind an FSA being "Use it or Lose it"?

The FSA, in contrast to the HSA, is not an "account" that you put money in. FSA stands for "Flexible Spending Arrangement," not "Account." Technically, it is a defined-benefit plan. Here is the ...
17 votes

Are the HSA and FSA bad deals?

For FSA, true, only someone who is a good planner should participate. Otherwise, you run the risk of losing unused money at the end of the year. Good planners can start with health categories that are ...
10 votes
Accepted

Opening an FSA with dormant HSA

Participation in the FSA will make you ineligible to contribute new money to the HSA. However, the money that you already have in the HSA is yours to keep until you use it. There is no time limit for ...
9 votes
Accepted

Is FSA spending eligible if the service is prior to Plan Year but the payment is within it?

Without being too pedantic there are a couple of important things going on. Tax deductibility of your contributions to an FSA: Each year the IRS specifies the maximum allowed contribution that ...
  • 48.6k
8 votes
Accepted

Who determines what is FSA Eligible?

A limited purpose FSA is materially different from a healthcare FSA. Most of the time when you read about an FSA it's within the context of a healthcare FSA. A limited purpose FSA is typically only ...
  • 48.6k
7 votes

Wife has FSA with employer, and my new employer offers an HSA plan. What to do?

I believe the following statement by JAGAnalyst is incorrect: In your wife's case, if you have an HSA and she has traditional health benefits with an FSA, this is not considered a problem since she ...
  • 111
7 votes

Is it mandatory to have health insurance?

It is risky to not have any sort of coverage. If you are young and do not have many assets to your name, you can plan on bankruptcy as a de facto "catastrophic plan", but in some cases this might ...
  • 250
6 votes

I have both an FSA and HSA. How can I fix this mistake?

One snag in your plan is that you alone can't undo your HSA contributions because you would also owe FICA taxes on that amount, and those need to be paid by both you and your employer. The only way ...
  • 46.4k
6 votes

Tax advantage of FSA reimbursement vs. FSA direct payment

If I pay upfront using after-tax dollars, then get reimbursed using FSA pre-tax dollars, am I actually gaining anything? You are paying upfront with your personal finances (using after-tax dollars), ...
6 votes

Are the HSA and FSA bad deals?

The HSA is the best investment vehicle (once employer contributions are maxed). This is because it is the only investment with triple tax advantage. Account contributions are pre-tax, earnings are tax-...
5 votes
Accepted

Can I use an FSA from multiple employers in a year?

You can have multiple $2500/yr contributions from multiple employers http://www.irs.gov/pub/irs-drop/n-12-40.pdf See bottom of page 5 through top of page 6: However, an employee employed by two ...
5 votes

Why would I enroll in a Limited Purpose FSA, on top of an HSA?

I maintain an HSA and a childcare FSA. Previously I maintained an FSA for planned medical procedures (for example I knew my spouse wanted LASIK surgery) In my scenario I am maximizing contributions ...
  • 2,790
5 votes
Accepted

Can I pay past expenses using an FSA opened midyear?

The FSA can only pay for expenses incurred after it was open. This also applies in case of a mid-year change in election (such as due to marriage, divorce, child birth, etc.) For example, according ...
  • 35k
5 votes

Wife has FSA with employer, and my new employer offers an HSA plan. What to do?

I work in the FSA/HSA/HRA industry and just wanted to point out that if your wife has a medical FSA, you cannot contribute to an HSA whether or not you are covered by her medical insurance plan. The ...
5 votes
Accepted

Would parking at a parking lot near or in my residence prevent me from paying for it with my transit FSA?

No, it doesn't look like you can use the employee benefit to pay for parking near your home. The definition for "qualified parking" is in the Internal Revenue Code Section 132 ("Certain ...
5 votes
Accepted

Is it possible to shift taxable wages on a tax return?

Federal tax refund is taxes you've overpaid. What you're saying is that this year you overpaid less than before. I don't understand why you see this is as a bad thing. Optimal situation is when you ...
  • 134k
5 votes
Accepted

Clarification on opening a Flexible Savings Account

No. First, I don't know what "Insurance Agent" means. It's your employer that handles FSA. Usually the HR department. You have a defined block of time to enroll. If you missed it, it's only a ...
5 votes
Accepted

HSA/FSA, changing health plans mid year, concurrent coverage

You said "you can't have an HSA if you are eligible to contribute to an FSA," but that's not quite accurate. The fact is you can have an HSA, but you can't contribute to it if you have an FSA or any ...
5 votes
Accepted

Can we have both HSA and DCFSA

Yes, you can have both a Dependent Care FSA and a medical HSA. However, a Dependent Care FSA is NOT for health care coverage for dependents. It is for daycare and other related expenses (day camps, ...
  • 117k
5 votes
Accepted

How is an FSA's total annual amount of contribution available on the first day of coverage?

FSA IS an entirely different animal from HSA. FSA is a "spending arrangement" not a "savings account." With FSA, you elect to forego some amount of income for the year. As of January 1 you have ...
  • 48.6k
5 votes
Accepted

Moving from Family HDHP/HSA, to individual HDHP/HSA and individual FSA?

Answers to your questions: Can I continue with my individual HDHP from my employer and change my family HSA contribution to an individual; and at the same time can my wife do the individual FSA? ...
4 votes
Accepted

Can I enroll in an FSA if my employer doesn't offer it?

Unfortunately, no. An FSA is exclusively an employer-established plan. Even self-employed people aren't eligible for an FSA. From IRS Publication 969: Qualifying for an FSA Health FSAs are employer-...
4 votes
Accepted

Healthcare / FSA: Lost job. Have expenses from earlier an the year that I have not submitted

Shouldn't I get reimbursed for at least the amount I've already paid into the plan? No. You should be reimbursed to the maximum of your election, for all the expenses incurred while you were ...
  • 134k
4 votes
Accepted

How does FSA work in case of change in employment?

Unfortunately that is exactly how FSA works. When your employment ended with that company, that puts a early end date on the funds. You can still submit bills, but only if they are for the period ...

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