Bye bye, tax breaks and Flexible Spending Account!
(wrote this a few weeks back and have been meaning to post it when attached to the internet...)
On the one hand, I'm disappointed.
On the other hand, I'm relieved.
Dealing with our Flexible Spending Account administered here has been a pain: The back-end accounting aspects of it (wellness dollars vs 2009 dollars vs 2010 dollars) has been far too complicated for something that on the face of it appears simple. I've had to speak to a representative and send the claim into the "research" dept on several occasions now. Claim submission is easy but getting the dollars back, especially in the transition from 2009 to 2010, was rough.
Fortunately for me, Congress and the President made the decision easy for 2011! Now I don't even have to think about it! Thanks, guys!
Money Quote:
Beginning next year money stashed in pretax FSAs, health savings accounts and health reimbursement accounts may no longer be used for over-the-counter medications other than insulin, unless prescribed by a doctor.
Even more significantly, beginning in 2013, the amount you can shelter pretax in an FSA will be restricted to $2,500 a year, an amount that will then be indexed for inflation.
From:
The Obama Tax Hikes--What to Do
http://www.forbes.com/forbes/2010/0426/investing-obama-tax-hikes-capital-gains-duck-obamatax.html
Guess we have to buy our medicines at Costco when we're not buying them directly from Kaiser Permanente!
On the one hand, I'm disappointed.
On the other hand, I'm relieved.
Dealing with our Flexible Spending Account administered here has been a pain: The back-end accounting aspects of it (wellness dollars vs 2009 dollars vs 2010 dollars) has been far too complicated for something that on the face of it appears simple. I've had to speak to a representative and send the claim into the "research" dept on several occasions now. Claim submission is easy but getting the dollars back, especially in the transition from 2009 to 2010, was rough.
Fortunately for me, Congress and the President made the decision easy for 2011! Now I don't even have to think about it! Thanks, guys!
Money Quote:
Beginning next year money stashed in pretax FSAs, health savings accounts and health reimbursement accounts may no longer be used for over-the-counter medications other than insulin, unless prescribed by a doctor.
Even more significantly, beginning in 2013, the amount you can shelter pretax in an FSA will be restricted to $2,500 a year, an amount that will then be indexed for inflation.
From:
The Obama Tax Hikes--What to Do
http://www.forbes.com/forbes/2010/0426/investing-obama-tax-hikes-capital-gains-duck-obamatax.html
Guess we have to buy our medicines at Costco when we're not buying them directly from Kaiser Permanente!