Flexible Spending Accounts (FSA)

[jbyrd898]

Have you used FSA accounts for medical or childcare expenses? Where you set aside money from your paycheck to go towards these things, and taxes are not taken out of them? I've never done it before, but Joey is starting preschool two days a week, and thought it would be a good way to pay for it tax free. Anyone done this before?

[mckinneymom918]

I did when I worked and the kids were in day care. Day care is limited to a certain amount. Also be sure not to over estimate, because if it is designated for day care it must be used for day care (the amount withheld must match to the dollar the amount paid on the 1099 from the day care, and it is reported on your tax return), and if you don't use it, you lose it.

[AzariahsMother]

I have never used them before.  I guess because I never got the point of them.

[Alwaysmotivated]

Its awesome, there is medical and then childcare fsa..You may have well use it because as you said it is tax deferred...and the monies is available right away up to the amount you are putting in for instance in our medical fsa we have put in 2500, lets say the deductible on our Ins is 1500, we can pay it even though they have not completely collected that amount thru our monthly pymts taken..You must be careful though if you don't use all of your money by year end, you loose it, so budget for the amount ur going to use. As you can tell I love it!!!!!

[jbyrd898]

Thank  you. I think I am going to do it. I'm a little nervous about it, because I worry it wont be as easy to get the money out as they say it will but it says on teh paperwork they will send me a special debit card so hopefully it will be easy enough.

Quoting Alwaysmotivated:

Its awesome, there is medical and then childcare fsa..You may have well use it because as you said it is tax deferred...and the monies is available right away up to the amount you are putting in for instance in our medical fsa we have put in 2500, lets say the deductible on our Ins is 1500, we can pay it even though they have not completely collected that amount thru our monthly pymts taken..You must be careful though if you don't use all of your money by year end, you loose it, so budget for the amount ur going to use. As you can tell I love it!!!!!

[Alwaysmotivated]

 good deal, it works for me, hope it does for you too.. Also, remember to keep copies of your receipts as well. :) Good Luck..

Quoting jbyrd898:

Thank  you. I think I am going to do it. I'm a little nervous about it, because I worry it wont be as easy to get the money out as they say it will but it says on teh paperwork they will send me a special debit card so hopefully it will be easy enough.

Quoting Alwaysmotivated:

Its awesome, there is medical and then childcare fsa..You may have well use it because as you said it is tax deferred...and the monies is available right away up to the amount you are putting in for instance in our medical fsa we have put in 2500, lets say the deductible on our Ins is 1500, we can pay it even though they have not completely collected that amount thru our monthly pymts taken..You must be careful though if you don't use all of your money by year end, you loose it, so budget for the amount ur going to use. As you can tell I love it!!!!!

 

 

[allyn9]

Signed up through work for one once years ago, and wasted its benefits by forgetting to save and enter the needed receipts on a tiemly basis.