How does your Flexible Spending Account work?

trinny

DH and I have never done this before.  Do you both contribute at both your workplaces or just one of you? 

I'm sure I can ask HR and figure it out on the first day, but just wondering about your experiences!

TIA!

eb2277

I am the only one who has it available so only I contribute.  There are limits (IRS) about how much you can contribute per year based on your tax situation.  So if both of you can contribute you have to stay under the limit.

It is working great for us.  My plan is very timely at reimbursing.   

 ETA:  I was speaking of the dependent care account (works the same as an FSA only for child care expenses).  I also use our FSA which I have a Visa card like the poster below.  I am not sure about the limits for the regular FSA (usually set by the employer), just the dependent care. 

katy75

DH's work doesn't offer it, mine does and we use it.  I tell them in November what I want withheld every paycheck.  I get a pre-loaded Visa card with all of the money on it for the year in January (even though the money is gradually taken out of my paycheck each payday).  When I need to pay for something with my FSA, I simply hand over my card and they swipe it like any other credit card. 

Keep your receipts if you use it.  My FSA provider asked for documentation last month of everything I had used it for so far this year in order to comply with government regulations.  That was fun trying to dig all of that up.

mclaugaa

Only my job offers it.  When I select my benefit package for the next year, I tell them how my I would like to contribute.  I don't have a pre-loaded card (wish I did) I have to pay for the items first then ask for reimbursement

dpdw

The FSAs I've had in the past have all worked well.  However the big thing with them is " you use it or lose it."  You contribute funds per paycheck to the account & you have to use all those funds that year (check the IRS for the exact rules, b/c it may be through April 15 of the next year too, I forget exactly) or you lose the remaining money.  FSAs are different from HSAs (Health Savings Accounts) in this regard, so make sure you know which one you have.  The tough part is doing an accurate estimate at the start of the year b/c I don't think you can increase your contributions mid year & you definitely cannot decrease (although you may be able to do it with a change in status, like a new baby) the amount.

If I had funds left at the end of the year I would order extra contacts or buy loads of OTC cold meds.

Generally only one of us contributes b/c its easier to manage just one account. 

babylove19

Funny you should ask this question. I have a FSA though my job. This is my first time using it. I just received a letter from them yesterday indicating that there are 2 charges that I need to send them an Explanation of Benefits or an itemized receipt.Mind you these charges where made in Feb and March and they just sent me a notice.Luckily I have the receipts but it is kind of a pain to have to do this. Like some of the other ladies I have a pre-loaded Visa card. Overall I've liked using it. I started out with a small dollar amount since I didn't know how it worked or how much money I'd actually use. And mine is a use it or lose it.