angry tanker

I stand corrected on the Flexible Spending Arrangement. See below or the link:

http://www.irs.gov/publications/p969/ar02.html#d0e1691

Balance in an FSA

Flexible spending accounts are “use-it-or-lose-it” plans. This means that amounts in the account at the end of the plan year cannot be carried over to the next year. However, the plan can provide for a grace period of up to 2½ months after the end of the plan year. If there is a grace period, any qualified medical expenses incurred in that period can be paid from any amounts left in the account at the end of the previous year. Your employer is not permitted to refund any part of the balance to you.

MaydayMark

Let me guess? You are a healthy 25 year old RJ f/o without any dependents? In your case, there may be better investments that an HSA. For those of us with families, who pay some serious taxes, this is in fact a great tax savings vehicle.

But thanks for your input anyway ...

Deez340

There is a HUGE difference between and FSA, MSA, and HSA. It seemed like we were mixing terms a bit there in this thread. The HSA is great if it fits your situation. If your healthy it's like another IRA.

MaxKts

I think you might be the one mixing things up. At FedEx, hence the "FDX - Health Care Savings Account" title of this thread, the HCSA is like a FSA and is a use-it-or-lose-it type account. You determine each year how much you want in it. If you are healthy and don't spend the money it becomes the worst IRA out there.

⌐ AV8OR WANNABE

That was pretty funny...

koz2000

you mean a boob-job could be tax free?

hyperone

From the Fedex Health Care Enrollment Guide:

"The Health Care Spending Account (HCSA) allows you to set aside money from your paycheck on a pretax basis (that reduces your taxable income) to pay for eligible health care expenses incurred by you and/or your eligible family members. It is a cost-effective way to pay for such items as medical and dental deductibles, copayments and eligible health-related expenses that are not covered by your health plan options."

"The HCSA is beneficial for anyone who has eligible out-of-pocket medical, prescription drug, mental health/substance abuse, dental or vision expenses beyond what their health plan options cover."

“USE IT OR LOSE IT” RULE
"Under this rule, you must use the money in your HCSA for eligible expenses you incur during the calendar year in which the contributions are made."

Pretty straight forward. It's a good deal for most guys at Fedex, as long as you don't over-estimate how much to put into the account. Whatever amount you designate to put into the account during the enrollment period, say $1200 as an example, then 1/12 of that amount is subtracted from your paycheck each month - $100/mo. for our example.
You can spend all $1200 (or whatever amount you designate) on Jan. 1st, and still just have to pay the $100 per month for the rest of the year.

The guide also lists what are allowable and non-allowable expenses. If you have questions, you can look at the guide at www.fedex.ehr.com.

SeeDub

You are right. Here at FedEx we have our Health Care Savings Account or HCSA which is actually a Flexible Spending Account or FSA rather than a Health Savings Account or HSA. The big difference being FSAs are use or lose while the HSAs are yours forever and earn interest.

Clear as mud, right?

wildcat1

Nope....older than I'd like to admit, married with 2 kids.

Yes, you can deduct all of your medical expenses. However, you get more money back if you don't have 7.5% of your income in deductions. If you use an HSA, you don't get to use the 7.5% standard deduction. So if your HSA doesn't exceed 7.5% of your income, you are throwing money away.

MaxKts

PLEASE send me the name and address of your CPA!! How are you deducting all of your medical expenses? Inquiring minds want to know!