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60

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% of your total household adjusted gross income, or $695 per adult. The new tax law does repeal the individual mandate starting in 2019. However, it would be ...


20

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, you are laid off. In this case, you've paid $300, but received $1,200. Your employer cannot compel you to pay the difference. Quoting Div 125, a provider: ...


20

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 amount and you agree to pay that same dollar amount out of your paychecks over the course of the year. “Uniform coverage” means that you are covered for the ...


18

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 saving my money." This sort of reasoning completely misses the point of insurance. Suppose you plan to pay $2,400 a year for either insurance or as savings in an ...


11

Edit: Let's forget about Wikipedia. From the horse's mouth: The cafeteria plan rules require that a health FSA provide uniform coverage throughout the coverage period (which is the period when the employee is covered by the plan). See Proposed Treasury Regulations Section 1.125-5(d). Under the uniform coverage rules, the maximum amount of ...


11

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 difference: With an account such as an HSA, you put money into the account, and you get that same money out. You can't take money out unless you first put money ...


7

There's an answer to this question already here, but reading it again I think it may not be as clear as you might expect. I'll summarize the main point: FSA is an employer-sponsored plan. That is, you only get benefits as long as you're employed with the sponsor. Once you left your work, for whatever reason, you're no longer covered (unless you elect COBRA)....


7

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 result in not having access to good medical care (like if you get cancer or need a transplant or some major surgery). A FSA really has nothing to do with this ...


6

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 can only use the FSA money for expenses incurred by members of your family on her plan. Unless your FSA funds can only be used for your spouse's expenses and ...


6

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 for that to happen is for your employer to undo your HSA contributions from their point of view so those wages can be entirely taxed with both FICA and regular ...


6

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), but then you get reimbursed the full amount from your FSA, negating that expense. The reimbursement came from your FSA, which you contributed to with pre-tax ...


5

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 to this page: You can only be reimbursed for qualifying expenses, from the election that was in place at the time the expense was incurred. So, say you had $...


5

They're not deductible, but you can receive tax credit for these expenses. See the IRS publication 503 on the matter. The credit is up to $3K for one child or up to $6K for more than one child, provided both parents work and have earned income, and the credit doesn't exceed the actual un-reimbursed expenses/limits. Read the pub for the full details and ...


5

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 to all tax-advantaged vehicles. So I fund my HSA to the maximum and my FSA to the maximum because I intend to keep my HSA as an investment account. I also ...


5

Even though your HSA may already cover vision and dental expenses, there are two reasons you still might want to consider a Limited Purpose FSA on top of an HSA: If you anticipate enough other expenses to completely use up funds in your HSA (and remember, annual contributions to an HSA are limited), then you can use the FSA funds for the vision & dental ...


5

You are not considered covered by an FSA unless you pick it. Many companies offer a high deductible plan and a linked HSA, and another option that has a regular policy with a Flexible Savings account. If the presence of the FSA option disqualified all employees from the HSA, that would be a big problem. Because the HSA can't be used for dental and vision, ...


5

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 Fringe Benefits") (f) (5) (c): (C) Qualified parking The term “qualified parking” means parking provided to an employee on or near the business premises of the ...


5

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 have no refunds and no taxes due on tax day, but it is really hard to get there. But the closer you can get - the better, which means that reducing your refund ...


5

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 qualifying event that might allow you to charge coverage.


5

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 employees can make to an employer FSA on a tax preferred basis. This contribution is on a calendar year and your employer is not required to offer the maximum. ...


5

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 health coverage besides the HDHP. However, this does not invalidate your entire year's worth of HSA contributions; the HSA contribution limits are prorated ...


5

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, before/after school care, etc.), NOT medical bills. That's what the HSA is for. The DCFSA decision should be independent of your heath care coverage. Compare ...


5

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 access to spend up to that amount of your employer's money for qualified expenses. If you leave the company having spent all of your allotted funds without ...


5

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? Would this avoid a conflict? Unfortunately, FSAs automatically cover the medical expenses of a spouse. This means that if your wife has an FSA, you are ...


4

Yes, you'll be able to get the money by submitting legitimate receipts for care for your child, and at tax time you'll pay the tax on the extra $3600.


4

Scenario A: Collected $1000; yet to be collected $1000; spent $2000. The company will not collect the extra $1000. They fund it from the money that people forfeit in other years. You can open a FSA with the new company for $500. This would fall under the life event exemption regarding changes to plans. Most companies will allow a new employee to start an ...


4

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 or more employers that are not members of the same controlled group may elect up to $2,500 (as indexed for inflation) under each employer’s health FSA.


4

You have two choices depending on your exact situation you might use either: the tax-credit or the flexible spending account (FSA). You can't use both unless more than one child in involved. The first thing to determine is if your company ha the flexible spending account for dependent care. If they do and you want to use it you either signup during open ...


4

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-established benefit plans. These may be offered in conjunction with other employer-provided benefits as part of a cafeteria plan. Employers have ...


4

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 employed. How can the plan admnistrator (employer) be allowed to keep what I don't spend, but not be obligated to reimburse what I claim, because they decided ...


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