Flex Spending Experts? Tax Savings Question

[golfgal]

I should also add that if I waited for DH to do any of this, it wouldn't get done. Just start saving all the receipts and do the paperwork your self. It would be a LOT easier.

 

[golfgal]

http://www.asiflex.com/calculator.html

Ok, I found this. I plugged in a bunch of different numbers, income, withholdings, etc and it gives you a tax savings/year and paycheck for flexspend. I put in a withholding of $350 and that give a figure of about $135/year, so about half. I put in $5000 and that was about $1350.00 savings/year using $100,000 as a nice round number income. At 50,000/year you would save about $100/month with a $5000 withholding. Try putting in your own info and see what you come up with.

 

[Tigger&Belle]

My DH has a fax machine, but his phone service is through his computer (forgot what it's called) so he can't use his fax machine to make the call. On our home phone we don't have long distance (we use our cells for long distance). So basically we have the fax, but no way to use it.

I'll try the online calculator and see what I get. Thanks!

 

[golfgal]

Will they accept a scanned copy and an email? Does your library or other business near you have a fax that they let the public use? Call the company and see if they have an 800 number you can send the claim forms to. Tell them that you can't send a long distance fax and see what they say.

 

[Tigger&Belle]

Not sure about the scanned copy and an e-mail. I don't think that there's an 800 number, but I don't know for a fact that my DH has really checked into it. The library is a lot further than the post office, so that wouldn't save time. Not sure if they have a scanner, anyway.

Vonage--that's what the computer phone service is called. Couldn't think of it earlier when I was trying to think of it, but I don't think that I've really woken up today.

 

[Chicago526]

My company offers this, I've never used it because I'm very healthy. But I just got married, and DH is NOT healthy (he should have married a doctor! ) so I'm looking into this for all of his meds. His insurance does not cover 100% of his prescriptions so we pay about $100 a month for that. Now, the prescriptions I know are covered. But are all OTC meds covered too? He takes lots of vitamins at his doctors request and those add up. We also go through a lot of cold medicine and Advil.

I think this sounds right for us, but I'd love to know more about OTC meds.

 

[Tigger&Belle]

I'm assuming that all plans are the same since they have to follow the IRS guidelines. Yes, they allow OTC medicines, all dr and dental charges not covered by insurance (co-pays, etc), cold medicines, Tylenol, etc.

 

[Christine]

My company offers this, I've never used it because I'm very healthy. But I just got married, and DH is NOT healthy (he should have married a doctor! ) so I'm looking into this for all of his meds. His insurance does not cover 100% of his prescriptions so we pay about $100 a month for that. Now, the prescriptions I know are covered. But are all OTC meds covered too? He takes lots of vitamins at his doctors request and those add up. We also go through a lot of cold medicine and Advil.

I think this sounds right for us, but I'd love to know more about OTC meds.

They do not cover vitamins. I think someone here at the DIS once pointed out--if it is a product to prevent illness and make you healthy it is not covered, if it is a product to treat an illness it is covered. So Tylenol, Motrin, Benadryl, Monistat, Sudafed, Nyquil, etc, are all covered.

 

[Christine]

Just wanted to add that my flex care managing company does not take faxes or e-mails (I wish they would). We have to use snail mail. But even with that, I usually have a check within 2 weeks of mailing it out.

 

[aprilgail2]

But are all OTC meds covered too? He takes lots of vitamins at his doctors request and those add up. We also go through a lot of cold medicine and Advil.

I think this sounds right for us, but I'd love to know more about OTC meds.

01 - Rx (prescription) Yes
02 - Co-payment (medical) Yes
03 - Office visit (medical) Yes
04 - Dental Yes
05 - Over-the-counter (eligible) Yes
06 - Vision Yes
07 - Psych / therapy Yes
08 - Chiropractic care Yes
09 - Lab (medical) Yes
10 - Orthodontia Yes
11 - Hospital fees Yes
12 - X-ray (medical) Yes
Acne treatments (over-the-counter) Yes
Acupuncture Yes
Adoption (medical expenses related to) Yes
Adoption fees No
Alcoholism treatment Yes
Allergy & sinus medicine and products (over-the-counter) Yes
Allergy medication (prescription) Yes
Allergy treatments Yes
Alternative dietary supplements (for treatment of a medical condition) Maybe
Alternative drugs and medicines (for treatment of a medical condition) Maybe
Alternative healers (for treatment of a medical condition) Maybe
Ambulance and emergency health services Yes
Anesthesia (for non-cosmetic purposes) Yes
Antacid (over-the-counter) Yes
Antibiotic ointment (over-the-counter) Yes
Aspirin or other pain reliever (over-the-counter) Yes
Asthma medicines or treatments (over-the-counter) Yes
Bandages and related items (over-the-counter) Yes
Birth control (over-the-counter) Yes
Birth control (prescription or other) Yes
Blood pressure monitor Yes
Body scans Yes
Braille books and magazines (difference in cost only) Maybe
Breast pump (to compensate for a medical condition) Maybe
Breastfeeding classes No
Canker & cold sore treatments (over-the-counter) Yes
Chest rubs (over-the-counter) Yes
Child or newborn care instruction No
Childbirth classes Yes
Chiropractic office visit or treatment Yes
Christian Science practitioners Yes
COBRA premiums (dental) Yes
COBRA premiums (medical) Yes
COBRA premiums (other) Yes
COBRA premiums (prescription) Yes
COBRA premiums (vision) Yes
Co-insurance (dental) Yes
Co-insurance (medical) Yes
Co-insurance (prescription) Yes
Co-insurance (vision) Yes
Cold & flu medicine (over-the-counter) Yes
Cold cream (over-the-counter) No
Compression or anti-embolism socks, stockings or hose Yes
Condoms and spermicides Yes
Contact lenses, cleaning solutions, etc. Yes
Contraceptives (prescription or over-the-counter) Yes
Co-payment (dental) Yes
Co-payment (medical) Yes
Co-payment (other) Yes
Co-payment (vision) Yes
Cord blood storage (for future treatment of a birth defect or known medical condition) Maybe
Cord blood storage (for unidentified future use) No
Corneal keratotomy Yes
Cosmetic surgery No
Cough drops & sore throat lozenges (over-the-counter) Yes
Cough syrup (over-the-counter) Yes
Counseling (for treatment of a medical condition) Yes
CPR classes (adult or child) No
Crutches, canes or like equipment (purchase or rental) Yes
Dancing lessons (for treatment of a medical condition) Maybe
Deductible for dental plan Yes
Deductible for medical plan Yes
Deductible for prescription plan Yes
Deductible for vision plan Yes
Dental care (for non-cosmetic purposes) Yes
Dental co-insurance Yes
Dental co-payment Yes
Dental insurance or plan premiums (if you are receiving state or federal unemployment benefits OR if you are age 65 or older) Yes
Dental products (for treatment of a dental condition, not general health) Maybe
Dental reconstruction Yes
Dental veneers Maybe
Dentures, bridges, etc. Yes
Diabetic monitor Yes
Diagnostic services Yes
Dietary supplements (for treatment of a medical condition) Maybe
Drug addiction treatment Yes
Drugs (experimental or imported) No
Drugs (prescription) Yes
Dyslexia treatment Yes
Ear drops & wax removal (over-the-counter) No
Educational classes or tuition No
Electrolysis No
Emergency kits (over-the-counter) No
Exercise equipment (for treatment of a medical condition) Maybe
Eye examinations Yes
Eye related equipment/materials Yes
Eye surgery or treatment to correct vision Yes
Eyeglasses (over-the-counter) Yes
Eyeglasses (prescription) Yes
Face lifts No
Fertility monitor (over-the-counter) Yes
Fertility treatment (for employee, spouse or dependent) Yes
Fertility treatment (for non-dependent surrogate) No
First aid kits (over-the-counter) No
Fitness programs No
Flu shots Yes
Funeral expenses No
Gastrointestinal medication (over-the-counter) Yes
Guide dog (dog, training, care) Yes
Hair regrowth products No
Hair removal No
Hair transplant No
Hair treatments No
Hand lotion (over-the-counter) No
Health club dues No
Health insurance or plan premiums (if you are receiving state or federal unemployment benefits OR if you are age 65 or older) Yes
Health savings account (HSA) contributions No
Hearing aids and batteries Yes
Herbal or homeopathic medicines (over-the-counter) No
Hospital services Yes
Household help No
Illegal operations or substances No
Immunizations Yes
Individual dental plan premiums (if you are receiving state or federal unemployment benefits OR if you are age 65 or older) Yes
Individual medical plan premiums (if you are receiving state or federal unemployment benefits OR if you are age 65 or older) Yes
Individual plan premiums (if you are receiving state or federal unemployment benefits OR if you are age 65 or older) Yes
Individual prescription plan premiums (if you are receiving state or federal unemployment benefits OR if you are age 65 or older) Yes
Individual vision plan premiums (if you are receiving state or federal unemployment benefits OR if you are age 65 or older) Yes
Infertility treatment (for employee, spouse or dependent) Yes
Insulin, testing materials and supplies Yes
Insurance or health plan premiums (if you are receiving state or federal unemployment benefits OR if you are age 65 or older) Yes
Laboratory fees Yes
Lactose intolerance (over-the-counter) Yes
Lamaze classes Yes
Laser eye surgery Yes
Lasik Yes
Late payment fees charged by health care provider No
Laxatives (over-the-counter) Yes
Learning disability treatments Yes
Lice treatment (over-the-counter) Yes
Listening therapy Yes
Lodging (essential to receive medical care) Maybe
Long term care premiums (up to IRS tax-free limit, $490 in 2004) Yes
Long term care services Yes
Magnetic therapy (over-the-counter) No
Marriage counseling No
Massage therapy (for treatment of a medical condition) Maybe
Mastectomy-related special bras Yes
Maternity clothes No
Medical abortion Yes
Medical co-insurance Yes
Medical co-payment Yes
Medical equipment (for treatment of medical condition) and repairs Yes
Medical insurance or plan premiums (if you are receiving state or federal unemployment benefits OR if you are age 65 or older) Yes
Medical literature, books, pamphlets or audio No
Medical monitoring and testing devices Yes
Medical records charges Yes
Medical savings account (MSA) contributions No
Medical supplies (for treatment of a medical condition) Maybe
Medicare alternative insurance or plan premiums (vs. Part A & Part B, if you are receiving state or federal unemployment benefits OR if you are age 65 or older) Yes
Medicare Part B premiums (if you are receiving state or federal unemployment benefits OR if you are age 65 or older) Yes
Medicare supplement policy premiums No
Medicines (over-the-counter) Yes
Medicines (prescription) Yes
Mileage ($.15 per documented mile for travel to/from eligible health care) Yes
Modified equipment (difference in cost only) Maybe
Monitors & test kits (over-the-counter) Yes
Motion & nausea Yes
Nasal sprays Yes
Nasal strips (over-the-counter) No
No show fees charged by health care provider No
Non-prescription drugs and medicines (for non-cosmetic purposes) Yes
Norplant insertion or removal Yes
Nursing services (wages and taxes) Yes
Nutritional supplements (for treatment of a medical condition) Maybe
OB/GYN fees Yes
Occlusal guards to prevent teeth grinding Yes
Occupational therapy (related to a medical condition or disability) Yes
Office visits (chiro) Yes
Office visits (dental) Yes
Office visits (medical) Yes
Office visits (psych/therapy) Yes
Office visits (vision) Yes
Operations (for non-cosmetic purposes) Yes
Optometrist / ophthalmologist fees Yes
Oral care (over-the-counter) No
Organ transplants (recipient and donor) Yes
Ortho keratotomy Yes
Orthodontia (braces and retainers) Yes
Over-the-counter acne treatments Yes
Over-the-counter allergy & sinus medicine Yes
Over-the-counter antacid Yes
Over-the-counter antibiotic ointment Yes
Over-the-counter aspirin or other pain reliever Yes
Over-the-counter asthma medicines or treatments Yes
Over-the-counter bandages and related items Yes
Over-the-counter canker & cold sore treatments Yes
Over-the-counter chest rubs Yes
Over-the-counter cold & flu medicine Yes
Over-the-counter cold & flu prevention Yes
Over-the-counter cold cream No
Over-the-counter cough drops & sore throat lozenges Yes
Over-the-counter cough syrup Yes
Over-the-counter health care products (eligible) Yes
Over-the-counter health care products (not eligible) No
Over-the-counter medication Yes
Over-the-counter products for dental ailments Yes
Over-the-counter products for general dental care No
Over-the-counter vision products Yes
Ovulation monitor (over-the-counter) Yes
Oxygen Yes
Pain reliever (over-the-counter) Yes
Personal use items (toothbrush, toothpaste, etc.) No
Physical exams Yes
Physical therapy Yes
Pregnancy tests (over-the-counter) Yes
Prescription co-insurance Yes
Prescription co-payment Yes
Prescription drugs (for non-cosmetic purposes) Yes
Prescription drugs for cosmetic purposes No
Prescription drugs for hair regrowth No
Prescription insurance or plan premiums (if you are receiving state or federal unemployment benefits OR if you are age 65 or older) Yes
Propecia (for treatment of a medical condition) Maybe
Prosthesis Yes
Psychiatric care Yes
Psychoanalysis Yes
Psychologist fees Yes
Radial keratotomy (RK) Yes
Reading glasses (over the counter) Yes
Reconstructive surgery (following accident or medical procedure or condition) Maybe
Removal of benign mole, cyst or tumor Yes
Retin-A (for non-cosmetic purposes) Maybe
Rogaine or other hair regrowth medications (even if prescribed) No
Smoking cessation (programs / counseling) Yes
Smoking cessation drugs (prescription) Yes
Smoking cessation gum or patches (over-the-counter) Yes
Special equipment Maybe
Special foods (gluten-free, salt-free or other for treatment of a medical condition) Maybe
Special school (for mental and physical disabilities) Maybe
Speech therapy Yes
Sterilization Yes
Student health fees (for dental services) Yes
Student health fees (for medical services) Yes
Student health fees (for prescriptions) Yes
Student health fees (for vision services) Yes
Sunglasses (over-the-counter) No
Sunglasses (prescription) Yes
Sunscreen (over-the-counter) No
Supplies (for treatment of a medical condition) Maybe
Surgery (for non-cosmetic purposes) Yes
Swimming lessons (for treatment of a medical condition) Maybe
Teeth bleaching or whitening No
Teeth grinding prevention devices Yes
Therapy (for treatment of a medical condition) Yes
Toothpaste, toothbrush, floss No
Transgender treatments / surgery No
Transportation, parking and related travel expenses (essential to receive medical care) Maybe
Tubal ligation Yes
Tuition or educational classes No
UV protection clothing No
Vaccinations Yes
Varicose vein removal surgery Yes
Vasectomy Yes
Viagra and similar prescription medications Yes
Vision co-insurance Yes
Vision co-payment Yes
Vision insurance or plan premiums (if you are receiving state or federal unemployment benefits OR if you are age 65 or older) Yes
Vitamins (over-the-counter, for general health purposes) No
Vitamins (prescription) Yes
Weight loss counseling Maybe
Weight loss foods No
Weight loss program (to improve or maintain general health) No
Weight loss program or drugs (for treatment of a medical condition) Maybe
Wheelchair and repairs Yes
X-ray fees (dental) Yes
X-ray fees (medical) Yes

 

[aprilgail2]

I use a flex spending plan at my job...I dropped the medical a bit lower this year though since my daughter had surgery and is not as sick as she was teh previous years. Last year I exhausted 1500.00 by march and that is with me having good health insurance! I also put away 2000.00 to pay part of her summer camp a year in my flexible spending dependant care account....it saves me a good bit of money doign it that way...then I don't put a claim in for it until Nov and it pays for her birthday party and a lot of my Christmas shopping!

 

[jfulcer]

Of course, you can make it even MORE complicated - this year in addition to the Flexible spending accounts, some companies now offer Health Spending Accounts. If I understand correctly, you are only eligible for these accounts if you are in a High Deductible plan (which I am in).

The differences are amazing. They cover everything that a Flexible spending account does, but after $1000 they start to earn interest. Even better, if you don't use it all up by the end of the year it doesn't disappear like with a FSA.

We signed up for the High Deductible plan this year, and put the difference we would have paid into the HSA for use for paying the deductibles/costs etc. We even get a credit card to use to access the account. It's cool.

 

[figment52]

Doing the $2000 would still save us $700, according to my calculations.

That is $700 that I would rather have in my vacation fund than in the hands of the IRS, but maybe that is just me.

 

[Lisa L from MI]

we do the flex medical thing too but couldn't claim it...something about having it taking out before or after taxes??? Can't remember which....whichever one we did, we couldn't claim it...as medical.

 

[Tigger&Belle]

That is $700 that I would rather have in my vacation fund than in the hands of the IRS, but maybe that is just me.

That was exactly my thought, but my DH is getting a little tired of me going to WDW so much, so I can't go that route with him.

 

[Tigger&Belle]

Of course, you can make it even MORE complicated - this year in addition to the Flexible spending accounts, some companies now offer Health Spending Accounts. If I understand correctly, you are only eligible for these accounts if you are in a High Deductible plan (which I am in).

I was reading about this today on the IRS website. Sounds great!

 

[SunFloridaDisney]

I didn't read all the replies so if this has already been suggested, here it is again.

It can be an annoyance, but I feel worth it. Whenever I go to the doctor, or the pharmacy, or whatever, when I get home I immediately place the receipt in the "medical pile", and about once a month I do the paper work and send it all in (via fax at work). You could have a file folder, a special box, or just tack them to the bulletin board.

This year we used almost $3,000 and I feel its very worth the tax savings, even though it is a pain to keep the receipts and send everything in regularly.

I have a friend at work who only submits the claims once a year! If I could get accustomed to that we could go on vacation! Unfortunately, I usually need the reimbursement by the time I get it, as we have a good amount of regular meds, allergy shots etc. each month.

 

[Dan Murphy]

HSA's, if available to you, either in a group plan, or individual, if you have that, are typically better than FSA's, as Jeff mentioned. I think more companies will have HSA's in the years ahead.

(not to be taken as tax or insurnace advice)

 

[m&m's mom]

OK, yal are making me a lot more appreciative of my company.
If I have a medical expense that includes insurance (prescriptions, Dr. visits, etc.) I do not have to do anything and a week later the money just shows up in my bank acct. They know how much was out of my pocket and I automatically get reimbursed without having to submit anything. It is not worth it for me to try to get OTC items covered so I have it better there.
I work for a company that manages and programs these kind of benefits so we better be good to our own employees.

 

[pjshaff]

OK, yal are making me a lot more appreciative of my company.
If I have a medical expense that includes insurance (prescriptions, Dr. visits, etc.) I do not have to do anything and a week later the money just shows up in my bank acct. They know how much was out of my pocket and I automatically get reimbursed without having to submit anything. It is not worth it for me to try to get OTC items covered so I have it better there.

DH's employer is like this as well. It automatically gets submitted to SHPS and they directly deposit it into our account. We are usually maxed out by March or April. I did use it in '04 to "pay" for my Lasik surgery.

In '05 we put in $3000 and are doing the same for '06.

We also use the Daycare/Dependant Care reserve account for Ds's preschool. That's $1000 for that. But with that one you can't be "pre-reimbursed" like you can with the Health care one.