HSA -v- FSA

Wow, I thought you had to use it by the end of the calendar year or forfeit.

Can you contact your FSA manager and see if the funds are still available, even if the card is not active? I wound up switching to the HSA specifically because of the accounting mess, plus we were limited to $2500. Not enough of a tax benefit to make it worth the bother.

Jan

Our FSA plan is based on our health insurance renewal schedule. I got lucky this year in that our plan renewed on 12-1-12 and so was before the new law that cuts you off at $2500 so i get the full $5000 for one more year. Of course that only takes me about 4 months to go through with our crappy insurance. I am not sure what I am going to do next year with it down to $2500. The HSA is tied to a high deductible plan which is not cut out for those with all sorts of health issues.

Yes, I contacted the FSA manager (HealthHub or Payflex. . .not sure which is their official name). I was told that they are bound by IRS rules and the IRS says that the money must be SPENT by 3/15. Documentation must be received by 3/31.

*shrug*

If this is the only complication I have from getting a J-pouch, I'll take it with a smile.

If you have an FSA, be careful!

We were forced on a HSA by my husband's former employer after he retired. He was non-union and the other management retirees all got together, sued and lost. The first $4,500 we have to pay. Since we know we always end up doing it we fully fund our HSA account every year and that makes it a negative tax adjustment on the first page of out tax return, the funding not spending amount. We can also pay for things our insurance doesn't cover like Chiropractor's and
Acupuncture. After you reach 55 you can put move $$ in the HSA. If you can afford it it's a good thing to do. When you switch over to Medicare and get a supplementary insurance I don't know if you can use this money for that but do know the left over $$ are converted to regular IRA accounts. Unlike FSA's where you have to use it or loose it HSA account funds carry forward so if you don't spend all the funds in it they money carrys over to the next year.

I know one guy that fully funds his HSA every year but doesn't use the money to pay for their deductibles. He's building up more retirement funds this way.