Flex account :/

[Jeff_G]

Well, the way the FSA works is that the money is put into your account through pretax deductions from your paycheck. So, if you were in a 25% tax bracket, you would have to earn $3333.33 to take home $2500 (.75 x $3333.33 = $2500). Thus, you are saving $833.33 by putting the money into the FSA, provided you use all of it by the end of your company's FY.

I'm not sure I agree with your math, you are having $2,500 removed form your paycheck pre tax so at the 25% tax bracket you are only saving $625 in taxes. This assumes you max out the FSA, now would you really spend $2,500 a year in medical expenses or are you spending $2,500 because it is in you FSA. And of course the tax savings is decreased when you have less taken out of your paycheck and put into the FSA.

My issue the the FSA reimbursement wasn't the OTC / debit card but was with other medical co payments and such. My company switched providers and the new one made that whole process a lot harder. They did not allow us to use the debit card for anything other then prescription / otc uses.

My point is that the IRS has made these way less attractive by removing the OTC use.

 

[dreamin_disney]

Oh and I don't have the debit card. I use my credit card so I earn cash rewards . When the cc bill comes in I pay it off with my work check. The fsa reimbursement is automatically deposited into a special savings account. 1st year all the FSa money was used to go on our first cruise. 2nd year it was used for debt and this year it will stay in saving. The rewards cash earned will also go into savings.

 

[GAGirlInVA]

OP- we've not had a year since it changed that we had extra to use on our OTC purchases.

Heck, this year we met our max out of pocket for our FAMILY in February. Sigh.

This isn't the OPs problem, but for anyone else reading the thread: you do NOT need to be a member of Costco to purchase most of their over-the-counter meds. Just go to Costco.com and purchase it there - there has been no surcharge for non-members on the drugs I've purchased. They are the same price as in the stores, and usually no charge for shipping. I receive most meds in the mail in about 3-4 days.

Good to know! Thanks!

 

[Sadie22]

The IRS does not make laws or levy taxes. The legislative branch does that. The IRS is an administrative agency.

Some of us have federal and state and local income taxes.

Flexible spending accounts for medical expenses and flexible spending accounts for day care expenses are a good deal that some people do not understand, just like some do not understand how employer matching in a 401(k) account is a good deal if it is available to them (as in put at least enough in the 401(k) to get the employer match).

I wish we had had an FSA available to our family when the kids needed orthodonture. However, now we need periodontal care, we see several medical specialists, and we are on maintenance medications. We don't bother asking the primary care doctor to write prescriptions for over-the-counter items, although I'm sure she would. It's not that hard for two old fogeys to spend what we put in the FSA.

 

[Gracie09]

Unfortunately, they don't offer their brand of D. You are only allowed to buy 15 pills with Fexofenadine at a time.



That really depends on how much you have taken out and what your tax bracket is. If you take out the max ($2500) and let's assume you are in a 25% tax bracket. Then, you are saving about $833 per year. That's not a "small tax savings", IMHO.

Our FSA is quite easy to use. We are given a debit card that we can use for medical expenses. The most we have to do is fax over receipts for doctors' visits.

I think the "d" stuff is behind the counter. You have to sign away your first born for it

 

[ssawka]

I'm not sure I agree with your math, you are having $2,500 removed form your paycheck pre tax so at the 25% tax bracket you are only saving $625 in taxes. This assumes you max out the FSA, now would you really spend $2,500 a year in medical expenses or are you spending $2,500 because it is in you FSA. And of course the tax savings is decreased when you have less taken out of your paycheck and put into the FSA.

My issue the the FSA reimbursement wasn't the OTC / debit card but was with other medical co payments and such. My company switched providers and the new one made that whole process a lot harder. They did not allow us to use the debit card for anything other then prescription / otc uses.

My point is that the IRS has made these way less attractive by removing the OTC use.

Not really sure where you are getting the $625 from, but in answer to your second question, yes we do spend the $2500 a year for just the three of us. I have really bad teeth and have to have an implant put in just about every year. That's about a $1000 right there. We also get glasses every other year, and I am on quite a few allergy meds. Between those expenses and DR. co-pays, we easily spend $2500 a year. Some years I wish I could put more into it. Actually, we get more than a year to use it because my employer has elected to offer the optional extended year provision. If you do not have at least $2500 in medical expenses every year, consider yourself lucky.

I think the "d" stuff is behind the counter. You have to sign away your first born for it

It depends on your employer's plan. My employer offers the ADP plan and as I said in a previous post, everything is paid using a debit card. The most we have to do is fax in receipts.

 

[Them!]

Drugstore.com has an FSA tab. I find all sorts of approved items that I wouldn't otherwise know were eligible.

 

[dreamin_disney]

Drugstore.com has an FSA tab. I find all sorts of approved items that I wouldn't otherwise know were eligible.

yes its a good site that I browse from time to time. About 2 years ago I had really bad plantar fasciitis. I was buying shoe inserts with arch and ball support. I had no idea that it was covered until I looked on FSA store. I still buy those inserts because from time to time my feet hurt and the inserts help.

 

[lady9]

After this year I am done with my FSA. Both kids are done with braces and our medical expenses are thankfully not much. The aggravation they cause me is not worth the savings. I sent in a bill from our doctor. I had already paid 2 of the 3 charges on the bill so the "amount due" showed only the most recent charge. I submitted all 3 charges (which were all listed on the bill), but was only reimbursed the "amount due". When I called they said that was all I was entitled to since the other 2 charges were already paid. I said yes they were, by me, and I want reimbursed. She said to resubmit the bill, and oops, sorry their mistake. This is not the first time, and I am done wasting my time and stamps on their mistakes.

 

[pryncess527]

This specific provision could absolutely be changed without an entire overhaul of ACA. it's just one provision -- Congress alters programs all the time. Unfortunately, Congress is too busy scheduling recall votes they know will fail instead of trying to find proactive solutions to the concerns they have.

There are still a large number of OTC meds that can be bought with FSA without a prescription -- bandages, contacts, first aid supplies, insulin supplies, etc. Drugstore.com has a nic elist and an easy icon next to items to make it obvious what needs an RX for reimbursement and what doesn't.

http://www.drugstore.com/fsa-reimbursement-rules/qxc268478

 

[TheRustyScupper]

My flex just started for the year. I wish that we could still buy over the counter stuff without an RX! Will it ever go back to the way it was???

1) It will never go back!
2) This is part of ObamaCare.
3) This is part of the way he is paying for it. *
4) By reducing the tax deductions for meds under Flex Accounts.

* But, as he said, there are no new taxes. Ya, Right!