FSA for dummies. need some guidance please.

[meg-momto2]

DH just signed up for one at work last month during open enrollment. we're only putting $25 a paycheck in. that's our co-pay amount and we're averaging at least one doctor visit a month so it sounded like a good amount for now. i just activated the card and i'm looking over our account. it says credit available is $600 which would be the yearly amount and account balance $25. does that mean i could get my kids dental work done with the $600 and it'll just be paid back from future pay checks? is it basically an interest free credit card in that sense? or do i need to let the account balance add up and use it like an checking account?

is there anything else i should know other then the OTC meds not being covered in the near future?

[lyterae]

With the FSA all of the money is available up front, it will just keep pulling out of your paycheck every week. Be sure to keep your receipts, mine wants copies of EVERYTHING and it's terribly annoying that when something comes through from the Hospital I still have to get all my paperwork together and send it in.

[pbjmama]

Our card can only be used for specific things - and not at the dr office. I have an envelope where I keep all of our receipts, as required. Yes, all credit is available up front. I wonder about overspending and then loosing a job...I'm sure they would send you a bill!

[pitter_patter]

I LOVE the FSA option!!! You get all of the money up front to use as you please. Make sure to keep receipts, I have an envelope in the file cabinet.

You can use it for prescription glasses, dental work, OTC meds, first aid supplies, all sorts of things, not just copays. We did $1200 last year and used every single penny, we are a family of four.

[MissMommyNiceNice]

Yep, it's all available to you immediately. A lot of people budget for their child care with it too! I have a HSA (similar) and it works a little differently. I did have a funny experience with it though -

YOu can use the money to buy like OTC meds, bandaids, etc, you know health related things...well I needed new wrist supports and I wanted ones without velcro so it wouldn't get caught in my wool or yarns...you cannot find this kind at the drug store, but the craft store had some. I tried to use my card there (knowing that it might be declined) and it was declined! Needless to say, I think they thought I was trying to buy craft supplies with my card. So don't try to use it at the craft store!

[pitter_patter]

Originally Posted by pbjmama

Our card can only be used for specific things - and not at the dr office. I have an envelope where I keep all of our receipts, as required. Yes, all credit is available up front. I wonder about overspending and then loosing a job...I'm sure they would send you a bill!

I left the industry in 2007 but at that time there was a loophole that allowed you to leave your job without paying back the money.

[lyterae]

Originally Posted by pbjmama

Our card can only be used for specific things - and not at the dr office. I have an envelope where I keep all of our receipts, as required. Yes, all credit is available up front. I wonder about overspending and then loosing a job...I'm sure they would send you a bill!

Human resources at my office said that if I lose my job/quit that the company eats the cost of the FSA. I would not be billed for it.

[sunflower.mama]

Originally Posted by lyterae

Human resources at my office said that if I lose my job/quit that the company eats the cost of the FSA. I would not be billed for it.

This is what we were told too.

If you do it for child care you can't access all amounts elected up front though. Because the limit is way higher - $5000 a year or something.

We've crept up to the point where we contribute $100 biweekly. We now have a deductable, and I use it for contacts and such. I love that when I have a sick child I don't worry about copays and medication costs since that comes from a separate budget.

[mommy2maya]

Originally Posted by pbjmama

Our card can only be used for specific things - and not at the dr office. I have an envelope where I keep all of our receipts, as required. Yes, all credit is available up front. I wonder about overspending and then loosing a job...I'm sure they would send you a bill!

Actually from what I've heard, if you lose the job, and have already spent the money, you are not required to repay it.

[meg-momto2]

i'm so happy to know that i can use that money now. both kids are in desperate need of dental work. had i know it would be immediately available i would have put more in there.

[MissMommyNiceNice]

Originally Posted by meg-momto2

i'm so happy to know that i can use that money now. both kids are in desperate need of dental work. had i know it would be immediately available i would have put more in there.

You can probably add more, check with HR. Good luck!

[Geofizz]

Originally Posted by MissMommyNiceNice

Yep, it's all available to you immediately. A lot of people budget for their child care with it too!

The difference is that health care FSA is available immediately, but childcare is available only as it accumulates. You can submit the receipts well into the following year, though.

Originally Posted by MissMommyNiceNice

You can probably add more, check with HR. Good luck!

Only during open enrollment.

[meg-momto2]

another question- the card is in DH's name. do i need my own? can i have my own? it's has the mastercard logo on it and i'm thinking i need one in my name since i'm the one doing all the appointments and finances.

[pbjmama]

Originally Posted by meg-momto2

another question- the card is in DH's name. do i need my own? can i have my own? it's has the mastercard logo on it and i'm thinking i need one in my name since i'm the one doing all the appointments and finances.

Well obviously I'm the only one who didn't know you don't have to pay back if you loose your job! But I do have a card in my name since I'm an authorized adult on the policy.

[lyterae]

Originally Posted by meg-momto2

another question- the card is in DH's name. do i need my own? can i have my own? it's has the mastercard logo on it and i'm thinking i need one in my name since i'm the one doing all the appointments and finances.

You should be able to request a second card, I've just used DH's and I make him sign the forms we submit.

[BetsyS]

I mostly use the card (well, only) at the pharmacy and at the doctor's office. I've never had any problem with it being in dh's name. The pharmacy has one of those dealies where you swipe it through yourself (we use the grocery store, so that's what it looks like), then sign.

I love having ours. It's really simple; this one doesn't require any receipts or sending anything in, as long as you use the card. And, if it's for something that we can't use the card for (I was recently hospitalized to have a baby), then when the bill is final, they just send a check (to you) for the amount that you owe. No submitting receipts--they just take care of it all. Some management companies make it really easy.