Opting-In to Healthcare Savings
It's open enrollment time at a lot of workplaces, the time of year when employees choose their benefits for next year. If your company offers a flexible spending account (FSA), participating could very likely save you some money on taxes. According to Hewitt Associates, the vast majority of large companies offer such accounts. However, less than one-quarter of employees take part.
With an FSA, you agree to set aside a specific amount of your pre-tax income to cover any out-of-pocket medical expenses. The money can be used for deductibles, co-pays, other out-of-pocket medical expenses, and even a variety of childcare expenses, including summer or day camps. Your benefits department will have a full list of eligible expenses.
Matt's View
The main issue to be aware of is that FSA money cannot be rolled over from year to year. So, estimate what your out of pocket expenses were for this year and use that as a guideline for choosing how much to set aside for next year.
Managing Money by The Book
- "To keep me from becoming conceited because of these surpassingly great revelations, there was given me a thorn in my flesh, a messenger of Satan, to torment me. Three times I pleaded with the Lord to take it away from me. But he said to me, 'My grace is sufficient for you, for my power is made perfect in weakness.'" - 2 Corinthians 12:7-9
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