clydewolf
Senior Member
Cash: $ 50.25
Posts: 248
Joined: 27 May 2012
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| Re: Need Health Insurance Advice |
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quote:
Originally posted by wyclef
Hey folks, got some questions. My Health Insurance plan was phased out and now I've got one with a $600 deductible but it's not a hi deductible plan so I can't set up an HSA and am not wanting to set up an FSA because of the use it or lose it policy. Wondering what other options I would have to set aside the money every year besides a savings account.
Why not take the FSA option?
Your Contributions are not taxed.
Even when you do not use all of your contributions you may still be ahead. Suppose you are in the 20% tax bracket. You contribute to the FSA $100. You reduced your tax bill by $20. From your FSA, you use $90 of the $100 you contributed leaving $10 in the FSA. You are still $10 ahead.
And you determine how much you want to contribute. So look at last year's expenses for qualifying FSA costs. Then commit to contributing 75% (or whatever you are comfortable with) of last years expenses.
Some FSAs allow a $500 carryover to the next year.
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