Wildcat,

You should seek some professional financial advice.

You're sounding more and more like the typical "got it all figured out" pilot. You know, the type that keeps investing, until it's all gone.

Wildcat

Get out your HP12C and run the numbers. 12 months, 100/month at 6%. At the end of the year you've deposited $1200 and the account is worth $1233.56

Conversely, putting that $1200 in the HCSA at an effective tax rate of 20% reduces the tax burden by $240.

What everyone is trying to point out is that if we at FDX don't put more into the account than we spend, it is a huge benefit to use the HCSA.

The minimum we can put in is $250. Using the above numbers, I could earn $7 in interest or save $50 in taxes. I would hazard that we all could spend close to $20 a month at Rite-Aid or in co-pays.

There is no standard 7.5% deduction. You can't start deducting medical expenses until they exceed 7.5% of your adjusted gross income (line 38 of your 1040). You need to look at schedule A just a bit closer.

The way you potentially save money or make money with an HSA is the fact that it is combined with a medical insurance program that has an extremely high deductible before it kicks in. That high deductible plus the fact that you are paying for medical procedures (including routine items) up to the amount of your deductible lowers your monthly insurance cost significantly(more than you will save on your taxes with an FSA). The upside to an HSA is that it earns interest in a tax free environment and any money left over at the end of the year rolls over. Also good is that HSA money is your money forever and grows tax free. On the bad side, initially anyone using a HSA will be walking a tightrope until your account builds up over time. Those typically in good health, who make infrequent visits to the doctor are good candidates for HSAs.

...but then who cares, this isn't an option through FedEx right now anyway. So back to contract 2010 and when I can expect to get out of the SO seat without bidding an FDA.

Nice one wildcat, I'm gonna print out your post and throw it in my tax file. Check it out with some pro's later, Thanks. Not.

WageWorks Visa Card
 

I talked to my local Costco Pharmacy and they now accept the WageWorks Visa card ( Health savings card).

I'm in my second year using the WageWorks card with no problems.