FSA: how much do I fund?

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new2bogle2
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FSA: how much do I fund?

Post by new2bogle2 »

With new insurance this year we are offered a FSA. I don't usually go to the doctor often. I'm told $500, can be rolled over. Does FSA funding depend on the plan's deductible? Does anyone know how much an insurance company covers for pregnancy and a new born and how much us out of pocket that can be paid for using FSA? Is there a Max amount of FSA funding (I heard $2,500).
I'm new to the "FSA World" so any advice would be a big help thanks!
Faith2014
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Re: FSA: how much do I fund?

Post by Faith2014 »

I don't think it rolls - it's use it or lose it.

My employer told us that the 2015 limit was increased to $2550 (an extra $50 - wow). It can be used for any non-covered medical expense, plus co-pays for prescriptions.

I have maxed mine out for several years due to the number and cost of prescriptions I take. OTC - they really don't cover any more, but I have a prescription for prevacid and as long as it's on file at the insurance co, I get reimbursed for it (I buy OTC). I have contacts and the lens solution is reimburseable as well.

Never had the joy of children, but I'm guessing you will have a lot of out of pocket expenses.
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Dutch
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Re: FSA: how much do I fund?

Post by Dutch »

The FSA maximum for 2015 went up $2,550. But make sure to check with your HR/benefits. Organizations sometimes set a lower maximum for their plan.

You need to make a conservative estimate of your unreimbursable medical expenses for the year. Even with the $500 rollover, there is the risk of losing it, when you don't use it.
Last edited by Dutch on Mon Dec 15, 2014 5:40 pm, edited 1 time in total.
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Dutch
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Re: FSA: how much do I fund?

Post by Dutch »

Faith2014 wrote:I don't think it rolls - it's use it or lose it.
The $500 rollover is new for 2015
arsenalfan
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Re: FSA: how much do I fund?

Post by arsenalfan »

You should talk to your benefits coordinator. Certainly you want to maximize your savings, and be within $500 of that.

E.g. if you're planning on a 2015 baby, learn EXACTLY how much your plan requires you to pay out-of-pocket, and put that in the FSA + $500.

We had an FSA before shifting to high-deductible health plan/HSA. It let you spend funds until April of the next year (eg 2015 money could be used up till April 2016). Most folks, when faced with a surplus >$500 of FSA funds, stocked up on prescription glasses/sunglasses and contact lenses.
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new2bogle2
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Re: FSA: how much do I fund?

Post by new2bogle2 »

what happens to FSA money unused at the time a person quits a job or is fired?
Last edited by new2bogle2 on Mon Dec 15, 2014 5:49 pm, edited 2 times in total.
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BL
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Re: FSA: how much do I fund?

Post by BL »

From this link:

http://www.irs.gov/publications/p969/ar ... 1000204174
You do not pay federal income tax or employment taxes on the salary you contribute or the amounts your employer contributes to the FSA.
Babies often need more health care. How good is your insurance?
What tax bracket are you in?
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Dutch
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Re: FSA: how much do I fund?

Post by Dutch »

new2bogle2 wrote: what happens to FSA money unused at the time a person quits a job or is fired?
If (your contributions - your expenses) at termination date is positive, then the amount defaults to the organization. If it's negative, then you don't owe anything to the organization.
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new2bogle2
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Re: FSA: how much do I fund?

Post by new2bogle2 »

Dutch wrote:
new2bogle2 wrote: what happens to FSA money unused at the time a person quits a job or is fired?
If (your contributions - your expenses) at termination date is positive, then the amount defaults to the organization. If it's negative, then you don't owe anything to the organization.
So If I load FSA with $2,550 and use $0 and get fired next month, I lose all that money??

How could it be negative in the account?!?
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Dutch
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Re: FSA: how much do I fund?

Post by Dutch »

new2bogle2 wrote:
Dutch wrote:
new2bogle2 wrote: what happens to FSA money unused at the time a person quits a job or is fired?
If (your contributions - your expenses) at termination date is positive, then the amount defaults to the organization. If it's negative, then you don't owe anything to the organization.
So If I load FSA with $2,550 and use $0 and get fired next month, I lose all that money??

How could it be negative in the account?!?
Before January 1, you commit to saving a certain dollar amount for the year. Lets say $2,550.

But your actual contributions to the FSA go through payroll deduction each pay-period, distributed evenly. Lets say each pay-period 106.25 ($2,550/24)

In other words: you don't "load" the full amount all at once.
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new2bogle2
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Re: FSA: how much do I fund?

Post by new2bogle2 »

Dutch wrote: Before January 1, you commit to saving a certain dollar amount for the year. Lets say $2,550.

But your actual contributions to the FSA go through payroll deduction each pay-period, distributed evenly. Lets say each pay-period 106.25 ($2,550/24)

In other words: you don't "load" the full amount all at once.
Ok.
So if I use $0 and am fired after 1 pay period i lose $106. But if I spend $406 in deductible payments that first week of January, the company will eat that $300 loss. Do I have that right?

Does a deductible payment qualify for FSA?

And how often am I reimbursed from my FSA? Can I be reimbursed after I leave a job so long as the medical date of service took place during my employ ?
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Dutch
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Re: FSA: how much do I fund?

Post by Dutch »

new2bogle2 wrote:Ok.
So if I use $0 and am fired after 1 pay period i lose $106. But if I spend $406 in deductible payments that first week of January, the company will eat that $300 loss. Do I have that right?
Right. And in theory you could spend your whole yearly amount in week 1.
new2bogle2 wrote:Does a deductible payment qualify for FSA?
Yes
new2bogle2 wrote:And how often am I reimbursed from my FSA?
Depends on you. You mail/e-mail/fax in a claim form to a third party administator with a copy of the invoices/receipts
new2bogle2 wrote:Can I be reimbursed after I leave a job so long as the medical date of service took place during my employ ?
Yes, as long as the date of service is before the termination date
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new2bogle2
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Re: FSA: how much do I fund?

Post by new2bogle2 »

Dutch wrote:
new2bogle2 wrote:Ok.
So if I use $0 and am fired after 1 pay period i lose $106. But if I spend $406 in deductible payments that first week of January, the company will eat that $300 loss. Do I have that right?
Right. And in theory you could spend your whole yearly amount in week 1.
new2bogle2 wrote:Does a deductible payment qualify for FSA?
Yes
new2bogle2 wrote:And how often am I reimbursed from my FSA?
Depends on you. You mail/e-mail/fax in a claim form to a third party administator with a copy of the invoices/receipts
new2bogle2 wrote:Can I be reimbursed after I leave a job so long as the medical date of service took place during my employ ?
Yes, as long as the date of service is before the termination date

You have been so very helpful. Thanks a bunch!!
:sharebeer
playtothebeat
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Re: FSA: how much do I fund?

Post by playtothebeat »

FYI, if you're about to lose your FSA dollars, check out www.fsastore.com. quite a bit of stuff that's FSA-eligible!
mikep
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Re: FSA: how much do I fund?

Post by mikep »

playtothebeat wrote:FYI, if you're about to lose your FSA dollars, check out http://www.fsastore.com. quite a bit of stuff that's FSA-eligible!
I have a limited purpose dental/vision only FSA. Is there a similar site that has just what would qualify for those? Or just pick the dental/eye care items on that site?
Luke Duke
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Re: FSA: how much do I fund?

Post by Luke Duke »

new2bogle2 wrote:Ok.
So if I use $0 and am fired after 1 pay period i lose $106. But if I spend $406 in deductible payments that first week of January, the company will eat that $300 loss. Do I have that right?
Yes. You could max out your FSA, have a medical procedure done on Jan 2, get reimbursed, quit your job and only be out of pocket $106 pretax.
PatrickA5
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Re: FSA: how much do I fund?

Post by PatrickA5 »

arsenalfan wrote:You should talk to your benefits coordinator. Certainly you want to maximize your savings, and be within $500 of that.

E.g. if you're planning on a 2015 baby, learn EXACTLY how much your plan requires you to pay out-of-pocket, and put that in the FSA + $500.

We had an FSA before shifting to high-deductible health plan/HSA. It let you spend funds until April of the next year (eg 2015 money could be used up till April 2016). Most folks, when faced with a surplus >$500 of FSA funds, stocked up on prescription glasses/sunglasses and contact lenses.
The new $500 rollover provision replaces the "grace" period provision. I believe the plan has a choice of allowing the $500 rollover clause OR the grace period clause - but not both. So, in OP case the last day to use the money would be 12/31.
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