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Simple example: My FSA card is pre-tax money to be used for healthcare expenses. Towards the end of the year, I ended up still having a balance that would go a
by alasdair_ 7y ago
Simple example:
My FSA card is pre-tax money to be used for healthcare expenses. Towards the end of the year, I ended up still having a balance that would go away if not used, so I bought things that I would not have otherwise purchased.
- ghaff 7y agoThat's a bit different. You're effectively getting "taxed" 100% on whatever is left over so you might as well spend the money on anything that has non-zero value to you. But if you, say, only lost 30% or 50% of the balance, it's not immediately obvious if you should spend the balance or not. OT but this is such a weird aspect of FSAs. I can carry some amount over with my plan which makes things a lot easier.
- sspyder 7y agoFrom my experience, FSA's doing go away at the end of the year.