It is insurance time soon. We have the option of a flexible spending account.
I wear glasses, and need new ones every year or so.
I take 2 thyroid meds because mine was removed. I have to take them. I take a couple of others as well.
I do not understand the FSA, and am not sure if I need one. I have about $100 USD in meds co-pays a month, and $25 co-pays for at least 8 doctor visits a year for blood work for the thyroid stuff.
My coworkers are better at adulting, and I do not want to ask around at work…
So do I need one, and how does it work? Thanks in advance.
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As others have said, the FSA money is deducted pre-tax so you have a small savings to apply towards medical related expenses. It is a “use it or lose it” plan, so only put in what you know you will spend. In your case, figure out what your annual costs are for your prescriptions and glasses, including doctor visits. Then sign up for that amount. You’ll typically receive a debit card to access those funds. And a nifty feature is that you have access to the full amount on day 1, even before you’ve actually contributed. But if you leave the company or the year ends before you’ve spent it all, it’s gone.
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