Flexible spending account

[cptacek]

I am looking to change jobs. I currently have a flexible spending account and put $25 a paycheck into it. Total of $650 a year. I have contributed $300 so far this year. It is my understanding if I use the entire $650 and then quit (before I have contributed all of it) the company can't come after you for the rest of it. (They get to keep any money not used at the end of the year if you don't use it, so this is the flip side of this.)

First question, is this true?
Second question, what kinds of things can I buy? We are going to get another set of contacts for DH, and I still need my "woman's" checkup, but that is only a $20 co-pay.

I was thinking saline, aspirin, cold medicine, but after that, I'm stumped. We are pretty healthy and don't have any kids. I'm afraid if I stock up on anything it will go bad before we use it. Any suggestions?

[sweeps]

Yes, that is usually (always?) the case that you can use up the entire amount even if you haven't fully contributed. But check your plan document just to be safe.

Flexible spending account eligible expenses

[Gruntina]

1. There is a hedge in the FSA system. Generally it is true that you can spend all of the FSA in your account before quiting and not pay back the whole amount. Companies have to pay the full amount of the FSA out of their pockets at the beginning of the year to the vendor. They cannot get that money back once it is sent. So if an employee leaves the company before the end of the year, that money is lost regardless if the employee used it up or not and payroll cannot adjust the monthly payments. If the employee did not used up the full amount in their FSA account, the Company still loses. The only way the company get back all of their money is if the employee pays it all back to the company(not the FSA Vendor).

(like the other has mentioned, please do double check your policy before assuming)

2. You should have received a list of what purchases are eligible or not. The vendor that is used for the FSA should have a website with all the info. If you cannot find it, usually the store can scan it to see if it acceptable or not.

[noppenbd]

Originally Posted by cptacek

I was thinking saline, aspirin, cold medicine, but after that, I'm stumped. We are pretty healthy and don't have any kids. I'm afraid if I stock up on anything it will go bad before we use it. Any suggestions?

Sunscreen, Tums, contraceptives.

[cptacek]

Originally Posted by noppenbd

Sunscreen, Tums, contraceptives.

I hadn't thought of sunscreen, but the page Sweeps sent me to has sunscreen greater than 30 SPF. That is a great idea.

We are trying to get pregnant (and Catholic) so no contraceptives

[sweeps]

One peculiar entry on that list is Autopsy.

I would not recommend getting an autopsy just to use up the rest of your FSA.

[cicy33]

It interests me that no one sees this as wrong. I have an FSA and I am not sure about this using it all and then quitting. I do know that if the item doesnot qualify you have to pay it back. But if you have not paid into it yet then you are spending money that is not yours. Not to mention if enough people do that then they won't let us have it all at once anymore which is very helpful. Now, for the money that is still yours, band aids, cold medicine, head ache medicine, contact solution, icy hot, kids medicine, glasses, contacts. there is more but that is all I can think of right now

[cptacek]

Originally Posted by cicy33

It interests me that no one sees this as wrong. I have an FSA and I am not sure about this using it all and then quitting. I do know that if the item doesnot qualify you have to pay it back. But if you have not paid into it yet then you are spending money that is not yours. Not to mention if enough people do that then they won't let us have it all at once anymore which is very helpful. Now, for the money that is still yours, band aids, cold medicine, head ache medicine, contact solution, icy hot, kids medicine, glasses, contacts. there is more but that is all I can think of right now

They (the vendor) gets to keep the money if you don't use it all by the end of the year. This is the flip side.

And from what Gruntina says, my company has already paid for it all, so me using it all or not doesn't matter to my company. And the vendor has already been paid, so they can't complain.

I don't see anything wrong with it.

[creditcardfree]

This is correct on both sides. Company keeps if you don't use all of it and if you use more than collected than company can right the remainder off as an expense. So the company gains, too.

It's happened to us twice...due to military activations. This was something that wasn't planned and couldn't be avoided on our end, so I see nothing wrong with it. Just turned out we had already used our full amount prior to the notification.

All the ideas are good ones...not sure I have anything to add.

[creditcardfree]

cptacek: Did you notice that pregnancy test kits are on the list? You just might need a few of those!!

Sweeps, actually autopsy does NOT qualify according to the list. I wonder why?

[cicy33]

True they keep what you don't use. That is why you are encourage to be careful what you put in there and make sure to use it before the end of the year. I guess I would be worried about someone calling me and saying you owe us money! I will be very sure to use mine up before the end of the year.

[poundwise]

Originally Posted by noppenbd

Sunscreen, Tums, contraceptives.

Sounds like someone has plans for the weekend!

LOL




As for the rest, I don't really have anything to contribute beyond what has already been offered. I know I am glad I have a HSA instead of a FSA.

[cptacek]

Originally Posted by creditcardfree

cptacek: Did you notice that pregnancy test kits are on the list? You just might need a few of those!!

Oh, Lord, let's hope so!

[zetta]

Stock up on ovulation test kits as well...