What are the pros and cons of having an FSA? Can you only do it through your employer? If your employer doesn't want to set one up for you, can you force them to?
2006-12-16 01:16:04 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
The pro's are primarily:
1. The amount you contribute is exempt from income tax.
2. It allows you to budget your out of pocket medical expenses.
3. Should you leave the job and have received more money back than contributed you are ahead that amount of money.
The con's are:
1. If you don't use it, you lose it.
2. Because of 1, above, you must do a pretty good job of estimating what your out of pocket medical expenses will be.
I believe it is the employers option whether to set up an FSA plan.
I don't think you can force them to. Ask your Human Resource Department and suggest to them that it would be a good idea.
2006-12-16 01:29:22 · answer #1 · answered by rkoblitz 6 · 0⤊ 0⤋
I had one for 2006 and paid for my "mail in" meds between the FSA and my visa. You save the income taxes on the amount you spend. If you don't spend much then it all gets down to if they charge you fees for checks and such. I am of an age where I want to simplify life so I just dumped the account. You can save about $200 a year.
2006-12-16 07:18:47 · answer #2 · answered by zocko 5 · 0⤊ 0⤋
I just signed up for one after a little research. The money is taken from your pay pretaxed. Basically that means that if you were to have $75 taken out it would have only been $50 to you because the taxes would have been taken away. A con is that you have to use the money in the account by a certain time 12-15 months or you forfeit it. Look into it.
2006-12-16 01:22:39 · answer #3 · answered by SiLKy 3 · 0⤊ 0⤋