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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It’s a medical savings account. It depends on what your job offers and their terms.
Jobs can allow 2 options, either an FSA or HSA. Main difference is an FSA resets each year, so if you are young and don’t have recurring medical bills, I wouldn’t set one up; an HSA keeps its balance each year, no resetting.
Both of them are tax-advantaged, you don’t pay income tax nor even FICA (not many deductions get around FICA tax, so this is great). You tell your job how much to take out of your paycheck/salary.
Some times you get a card or account numbers to use for a medical purchase, sometimes you just save your receipts and pay for it out of pocket and then you can transfer the money from the FSA/HSA to your personal checking to make you whole.
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