Flex Accounts - Who keeps the cash?

Question

So I put money in my Flex Account all year and I have some hundred dollars left. My employer has been taking it out of my check and giving it to the Flex program.

So the money is taken out already from me, the employer doesn't have it, does the Flex program get to keep it if I don't use it all? The answer is obscured everywhere with the "use it or loose it", but who am I loosing it to? It doesn't just vanish. It's got to be in someone banking account.

Answer 1

Flex account (medical spending account)

If you don't use it your company get it! Not the plan but your BOSS. Here is how the BOSS / workplace wins.
1. If you don't use all the money. They get whats left over.
2. If you wait until the end of the year to fill out paperwork they get the interest on the money.
3. If you quit, what ever money is not used is their's.

HOW YOU WIN
1. Tax savings. It's always better to spend money that is not taxed!
2. You can use the money before you "pay" it in.
3. Easy way to save for medical experiences.
4. You quit after signing up for $4,000 flex plan and used it all. They end up paying the whole bill.
5. You usually can count bill made up to 1-2 months after end of period. Check with plan provider first.

If you have money at the end. Go get glasses or contacts. HECK even condoms count (birth control), painkillers, contact cleaning stuff, go get your perscription filled early.

Just don't break a leg running out to the store! LoL

Answer 2

The money goes to the tax man (the IRS). By opening a flex account, you're gambling against the IRS. If you get sick enough by the year end, you win (by getting the tax break). If you're healthier than you expected, you lose all the money to the IRS.

Next year, consider opening a Health Savings Account (HSA) rather than a flex account. An HSA is a tax-free investment vehicle in which you can keep, grow, and compound your money tax-free for as many years as you want. When you don't gamble against the IRS, you are already the winner.

Answer 3

She could have the skill to open an acount and get a card to withdraw money from an ATM - yet no longer a debit card. A discounts account with a return of a minimum of five.25% activity a 300 and sixty 5 days may be the final - make that 5.5% a 300 and sixty 5 days after Wednesday! LOL If she gets the habit of saving now - it is going to in all likelihood undergo in to grownup existence and she or he would be in a position to a minimum of collect activity - rarer than paying it to the monetary corporation. only borrow and pay activity on an investment - like buying property. now's a competent time with expenses of activity by means of pass up.

Answer 4

It is saved by whatever bank issues your flex account.... remembe though that you still have time to use up that money you have left over! Don't let them keep it. Over the counter medicines, like tylenol and cold and flu remedies are covered by flexible spending, so stock up for the cold season and keep youor money yours!

Answer 5

Exactly, it is in the bank, whomever signed for that account has the right to your funds. While in the bank, the bank uses that money to invest and you can earn cash through interest. The bank invest in different funds and companies earning money to pay you the interest but the bank also keeps the rest earned which is a lot!

Answer 6

Where i work it is a thrid party administrator which happens to be a division of a insurance or broker company.

In my opinion they probably invest it and keep the interest as part of their fees.

Answer 7

it goes to them, the flex account. They keep it. I think it's unethical and should be illegal.

Answer 8

Listen to compgeekdotcom, he knows what he is talking about.