I'm afraid of FSA commitment...

SarahFin

2009 will be our first full year using daycare and while I know that we have the potential to incur more that $5K in childcare expenses, I have a such a hard time commiting to that amount!  DS goes to daycare PT in the summer and 3-4 days a week the rest of the year, so we can definitely meet that $5K number.  It's silly because I already talked to my accountant and know that this is my best option, but the commitment kills me!!  argh!   

beenbizzy

I'm the exact same way!  We will spend close to $6000 in daycre in a year, so I know we'll use it.  But still...

mrshutch

As long as you know you'll use the full amount, you're good. Just remember that the money comes right back to you- literally within days. Hopefully that makes it feel a little better!

LovetheMarriedLife

Wait, fill me in. Your FSA pays for your daycare costs?!?

December29_Brid

Yeah, getting that FSA money taken out the first few times was hard, but getting it back was better!  It really turned out to be a blessing for us especially since I spend about $11,000/year, getting $5,000 of that back is AWESOME!

RubyRed7

I couldn't do it because my husband's work is unpredictable, but I do know how wonderful a benefit it is! Congratulations on all the money you'll be saving

(And I'm sorry to those of you who spend more than 5k a year!)

mrsmikey

The one thing I don't like about it is that you essentially pay twice before you get it back.  Once out of your check, and once out of your pocket, until you get something back.

I get paid once a month, at the end of the month.  So I have to pay 4 or 5 weeks worth of daycare, then it also gets taken out of my check, and THEN a few days later I can get the money back.  I know it's just a few days, but that's really hard on us.

molldoll71

Since $5,000 is not even 1/2 of what Billy incurs in daycare - was a very easy deicsion for us to make!  Honestly, though - I don't even notice it frommy paychecks.  And actually we are saving an extra $5k on top of the tax break.  Since you have to pay daycare first and then get reimbursed - whenevr we get a reimbursement check we put it right into savings (since we've already paid out the money). 

murphyec

The idea of that much coming out of my paycheck makes me nervous too, but since I will get it back within days it is worth it.

sara1104

like pp said - that is 1/3 of what we spend a year, so it was an easy decision for us. I wish they would let me do more than $5K!  I just had a little system where I would mail in my receipts ASAP in order to get the money sooner than later

bridetobe0jb

I don't even blink...it's only a third of my annual expense for 1 kid.  I wish they'd up it. 

Angela814

Our daycare is over $10k a year full time.  I'm actually laid off now, so I was thinking about what we'll do for FSA next year.  $5000 is only $96/week.  We would be just under that with 3 half days or just over it with 2 full days.  Even if I don't end up working for one reason or another, I'd still want her in a preschool program, so I figure we'll meet that $5000 no matter what happens.

Geb

We pay $600/week for our 2 kids, so $5,000 is a small blip and anything to lower our taxes is helpful. It gets taken out of each check and I get reimbursed in the 2nd check of each month, so I only "see" the reduction in the first check of the month. Turning in receipts is the pain for me, but with the amount we spend I have my entire $5000 submitted pretty early in the year. I wish they'd up it too

tcwedding03

We pay over $12k so I'm not to worried.  The tax savings is just to great.

SarahFin

LovetheMarriedLife:

Wait, fill me in. Your FSA pays for your daycare costs?!?

My company offers a Medical FSA and a Dependent Care FSA.  $5K max (federal regulation) on the DC FSA.