Flex Spending Accounts: Deadline Nears
Millions of American workers maintain a Flexible Spending Account to boost the buying power of their health care dollars. Income directed into your FSA is not taxed. That lowers your total taxable income, possibly lowering your Federal income taxes as well. How's that for a win-win situation! Time is running out and you must decide how to spend whatever's left in your 2005 account. Unused FSA funds are forfeited and cannot be rolled over to the next year's account.
Here is some very good news for procrastinators. The federal government has extended the deadline for spending 2005 FSA funds until March 15, 2006, if your employer also elects to extend the deadline.
Do you wear contact lenses? Use your remaining FSA dollars to stock up on a supply of your favorite brands.
Doctors' visits co-payments? Wipe them out with your FSA.
Taking prescription eyedrops? That's right; use your FSA to cover your out-of-pocket expenses.
FSAs will even pay for LASIK laser refractive surgery.
What about Botox injections for wrinkles? Not yet, but they're working on it!
Remember, payroll money going into an eligible FSA is not taxed and that tax discount immediately puts more money into your pocket. Your employer can answer all of your questions about participating in a FSA and help determine whether a Flexible Spending Account is right for you.
Related Links: MSA: Medical Money in the Bank, Medicare Update 2005, Part II
Here is some very good news for procrastinators. The federal government has extended the deadline for spending 2005 FSA funds until March 15, 2006, if your employer also elects to extend the deadline.
Do you wear contact lenses? Use your remaining FSA dollars to stock up on a supply of your favorite brands.
Doctors' visits co-payments? Wipe them out with your FSA.
Taking prescription eyedrops? That's right; use your FSA to cover your out-of-pocket expenses.
FSAs will even pay for LASIK laser refractive surgery.
What about Botox injections for wrinkles? Not yet, but they're working on it!
Remember, payroll money going into an eligible FSA is not taxed and that tax discount immediately puts more money into your pocket. Your employer can answer all of your questions about participating in a FSA and help determine whether a Flexible Spending Account is right for you.
Related Links: MSA: Medical Money in the Bank, Medicare Update 2005, Part II
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3 Comments:
My biggest problem with FSA accounts is that I forget to use them! So then I end up losing money...I think they're great for organized people, though!
Two comments:
1) Why on Earth would any medical organisation in their right mind want to try and ENCOURAGE people to inject a deadly toxin into their skin?
2) Move to Cnada where medical care is basically free.
At the right dosage all medications are 'deadly toxins', right? Therapeutic Botox (very small pico-dosages) can help people burdened with spasmic lid blinking...even crooked eye muscles.
Dr. Lloyd is pretty funny. I suspect he was alluding to its popularity for removing wrinkles.
About Canada, it's a great system if you're delivering a healthy baby. Sure, it's free right after you pay those sky-high income taxes AND don't mind waiting 6 months for cardiac bypass surgery!
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