Should I enroll in a "healthcare FSA"?

Submitted by Cole-Rex t3_z8e15t in personalfinance

What is this even?

While changing my dental and vision benefits on BeneFeds I noticed I was eligible to enroll in a healthcare FSA account, the only issue is I have no clue what it even is or if it's worth it. I am not clicking anything to determine the price until I am more aware of what this is.

0

Comments

You must log in or register to comment.

bas237 t1_iyb574o wrote

It allows you to pay deductibles and other medical expenses with pre tax money. It saves us many hundreds per year.

4

Cautious_General_177 t1_iyb5ka5 wrote

Be aware, this is NOT an HSA, so you can only carry over a certain amount if it's not used. That being said, if you know about how much you will use on qualifying expenses (there's a decent list that may include things like gym memberships) you can at least plan for that and have it set aside.

1

c0mmand0-fr33k t1_iyb5gpj wrote

Basically you select an amount out of your yearly salary, that money doesn't get taxed and you can use it on medical bills.

So let's say you pick $2600. You are available right away to spend that $2600 right on 1/1/23.

They will deduct $50 a week or $100 every 2 weeks based on how often you get paid.

But if you don't spend it all in 2023 , you lose in 2024.

Most plans have a grace period a couple months into the new year.

So if you are paid 50k a year, your net taxable income would be 47.4k

4

KoastPhire t1_iyb59ny wrote

It's for any healthcare cost and some selective surgery like lasik that you can pay for with tax free funds. Also depending on your FSA riles the unused money may be lost if you do not spend it all in the calendar year.

1

Law5_LOTG t1_iyb5hni wrote

Find out if your company has some sort of match for it. Mine gives $500 after completing a few wellness things.

1

AllTheyEatIsLettuce t1_iyb8s4h wrote

Tax avoidance product among a range of short and long term personal and business income tax avoidance/deferment products. Straight, across-the-board avoidance with this one, personal/business income tax as well as Social Security and Medicare funding contributions; no deferment aspect.

1

dcdave3605 t1_iybcf2i wrote

Yes, you can buy all sorts of over the counter things along with paying for medical services. With prescriptions you can even buy exercise equipment with the pretax funds.

1