If you're going to have a lot of medical expenses that you are going to pay IN THE SAME YEAR, it can be worth it. It's good because the money comes right out of your paycheck and is not taxed, and you can use it for over-the-counter medicines. It's not so good because you have to account for and provide receipts for *every* dollar you spend from the FSA, which can be kind of a hassle. And the medical bills have to be paid in the same year that you received care. For example, I had an ultrasound in 2007 but didn't get billed until 2008. I paid for it out of my FSA in 2008, but when I sent in the receipt, they refused it, and we had to put the money back in. And emexmom is right, whatever you don't spend by the end of the year is gone.
It wasn't worth the hassle for us, so we decided not to use it this year.
at 9:08 AM on Feb. 6, 2009