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May 2011 Moms
FSA Experts
When I told work about the pregnancy, I aked them if they allow me to transfer my health insurance funds(800+ a month) into an FSA for dependant care and an FSA for healthcare. DH works for the same company and we both technically have full family healthcare that covers 90%. It made more sense to me to use the funds where we will need them, rather than to just pay the 10% of the healthcare balances. the FSA-HC would be used to cover the 10% when needed.
My company does not currently have FSA, but are willing to set one up and pay into one for me. My question is, who administers these for single accounts? All of the research I've done shows that it would need additional accounts to be worth their time to set up. Has anyone done this independantly?
Another question, Has anyone used an FSA for dependant care? how easy it it to use? Can it be used for an in-home center? I think it can, but its going to be a learn as we go process.
Thanks!
This discussion has been closed.
Re: FSA Experts
I'm not quite sure I follow you on transferring your health insurance funds to an FSA....do you mean your company gives you money to pay for health insurance, and you want to put it in your FSA? You can't use an FSA to pay for health insurance premiums that are charged by your plan, just for other expenses like co-pays, prescription medication costs, etc.
FSAs and Dependent Care Accounts are two totally different things, so your company would need to set up both for you. Yes, Dependent Care Accounts can be used for in-home centers or nannies. We are going to use ours for an in-home daycare.
Keep in mind that having a baby is a qualifying event for FSAs and Dependent Care Accounts, so assuming that these accounts are in place, you can always determine after you have the baby if you want to put more money in. We are not going to contribute to our Dependent Care Account until after the baby is born (in case he or she is early and we need daycare sooner, and it will therefore cost more for the year, for example).
When I told my office about the pregnancy, they were concerned that I'd not be returning because of the cost of daycare. I told them that I would like to return but will need some cooperation with daycare costs. their response was that i can forefit my healthcare (because i honestly don't need it for the 10% coverage DH's doesn't cover) and instead use those funds for an FSA account or two. I'd be able to pay for daycare as wll as th10% that DH's policy doesn't cover. As long as it is a nonburdening exchange to them, they are willing to let me use the funds as i need. My problem is, i can't figure out who can administer the funds and what is allowable under them. I would only be a single account, so most places I've found won't bother with me...
Oh, OK, got it, so they're basically just giving you money to put in an FSA or Dependent Care Account.
I'm sorry I don't have any experience with companies that will administer a single account. My office uses the company Paychex to administer FSAs - maybe you could call their general number and ask if they have any advice?
wow, I didn't think legally they were allowed to do that. Interesting.
One thing with the dependent care is that you can't do it now, you have to wait until the baby arrives, as you currently do not have a dependent. There is also a limit to how much can go into the account, so depending on how much they put towards your premiums currently, they may top out so you don't get the full amount.