home | banking | car | college | credit/credit card | economy | home/mortgage | insurance | investment | retirement | spending | tax | et cetera

November 16, 2004 09:37 PM

Use it or Lose It


Excerpt: Do you still have some FSA money to burn before year-end? Don't worry. We've got five suggestions on how to spend it.


WITH THE END OF the year rapidly approaching, 33-year-old Stephanie Borise needs to rack up some medical bills — fast.
Borise still has $1,000 left to spend in her flexible spending account (FSA), a benefit provided by her employer that allows her to use pretax dollars to pay for health-care expenses not covered by insurance. These popular accounts have helped millions of Americans save on health-care costs over the years, but they come with one frustrating provision: The money set aside each year must be used before year-end. In other words, you must use it — or you'll lose it.

The good news: It's fairly easy to generate extra bills when it comes to health care. Already, Borise, a fair-skinned New Yorker, has scheduled appointments for a full-body skin cancer check and an eye exam. She has also decided to see her therapist more regularly. If that doesn't eat up the $1,000 before the ball drops in Times Square, she'll spend the remaining money at the drug store, loading up on supplies for the winter cold season.

Jon Kessler, chairman of WageWorks, an FSA administrator, says that FSAs, when used properly, can save the typical family up to 30% to 40% in taxes on their contribution. The key is to estimate conservatively how much you need — and to know what's covered, which varies by company. While the IRS has set general guidelines, it's up to your employer to interpret them. Generally speaking, most "medically necessary" items are covered, from deductibles to antacid tablets.

Do you still have some FSA money to burn before year-end? Don't worry. We've got five suggestions on how to spend it.

Read Full Story ...



Bush Advisors Urge Deeper Tax Cuts In 2nd Term (November 17, 2004)
STANFORD, Calif. -- Economic advisers who helped President Bush craft his first-term tax cuts favor deeper across-the-board rate reductions instead of more radical alternatives to the tax system, which are viewed as unlikely to pass. Although Mr. Bush's outside advisers at the Hoover Institution think ...
The Best Way to Save on Health-Care Costs (November 16, 2004)
WE DON'T NEED to tell you that health care is expensive. Americans spent some $212.5 billion, or roughly $725 per person, in out-of pocket expenses in 2002, according to the Center for Medicare and Medicaid Services. And unfortunately, there doesn't appear to be any relief ...
A New Twist To Your Tax Bill? (November 16, 2004)
A political cartoon shows Uncle Sam heading down a path marked "General sales tax." He's trying to move forward. But holding him by the coattails is a bearded character labeled "Congress." That cartoon dates from 1933 but it could easily run today. Fresh from his ...
Taxes and Consequences: The Second Term Begins (November 13, 2004)
PRESIDENT BUSH began his first term with projections for $5.6 trillion in budget surpluses. Though he will start his second term facing at least $2.3 trillion in deficits, according to the Congressional Budget Office, his tax-cutting ambitions are even greater. Here are some of the ...

Read all 46 posts in the same category of Tax:

Few People Aware Of New State Sales Tax Deduction - Dec 17, 2004
Ownership Has Its Privileges - Dec 12, 2004
Bush Rejects Raising Taxes to Pay for Social Security Plan - Dec 12, 2004
Social Security Reform, With One Big Catch - Dec 12, 2004
Bush Eyes Social Security Threat - Dec 12, 2004
Put Away Your Check Book - Dec 10, 2004
IRS to Issue Rules On Tax Shelters - Dec 09, 2004
Year-End Tax Planning Moves for Small Businesses - Dec 08, 2004
Give Tomorrow, Get the Tax Break Today - Dec 08, 2004
2004 Year-End Tax Planning Moves - Dec 08, 2004
CCH Capital Changes Identifies Top Ten Tax-Complex Corporate Actions for 2004 - Dec 07, 2004
GainsKeeper Suggests Year-End Tax Planning Strategies to Minimize 2004 Taxes Owed - Dec 07, 2004
Stocks That Need Special Tax Moves - Dec 07, 2004
Poll: Social Security Needs Reform - Dec 07, 2004
Options Open On Tax Reform - Dec 07, 2004
More Tips to Slash Tax Tab - Dec 05, 2004
10 Tax Time Bombs To Defuse Now - Dec 04, 2004
Property Taxes Rising Nationwide - Dec 04, 2004
Noncash Gifts To Charities Can Be Deducted - Dec 04, 2004
2004 Year-End Tax Planning Moves - Dec 02, 2004
Get Your Car Ready for a Fast Giveaway - Dec 02, 2004
Don't Fear the Use-It-Or-Lose-It Rule - Dec 02, 2004
Partnerships Lose Tax Exclusion On Canceled Debt - Dec 01, 2004
A Tax Break for Your Kidney - Dec 01, 2004
8 Profitable Year-End Tax Moves - Nov 29, 2004
Tax Break Curbed: Changes To Donation Write-Off May Hurt Charities - Nov 28, 2004
When Is That Holiday Turkey Taxable? - Nov 26, 2004
Your Next Tax Hike - Nov 26, 2004
Line Up Your Tax Deductions - Nov 26, 2004
Last Chance to Trim Your Taxes - Nov 23, 2004
Know Your Optimal Year-End Tax Strategies - Nov 22, 2004
To the Point of No Returns - Nov 22, 2004
Turning the Tax Tables to Help the Poor - Nov 22, 2004
With Checkbook in Hand, Think of Uncle Sam - Nov 22, 2004
Moratorium On Web Tax Advances - Nov 17, 2004
25 Ways to Spend Your Flex Account - Nov 17, 2004
Bush Advisors Urge Deeper Tax Cuts In 2nd Term - Nov 17, 2004
The Best Way to Save on Health-Care Costs - Nov 16, 2004
A New Twist To Your Tax Bill? - Nov 16, 2004
Taxes and Consequences: The Second Term Begins - Nov 13, 2004
Microsoft Payout Tempts Investors On Tax Strategy - Nov 12, 2004
What the Recent Tax Changes Mean to You - Nov 07, 2004
Highlights of 2004 Changes in the Income Tax Laws - Nov 04, 2004
Bush's Tax Cuts Are Unfair ... To the Rich. - Nov 03, 2004
No Rest for the Bleary: New Tax Turns to Ponder - Nov 03, 2004