Make the Most of Your Money: Sign Up for a Health Care Spending Account

I just got a reminder from our company benefits manager that it’s open-enrollenment and  time to update my benefits for 2010, including how much I wanted to allocate for my health care spending account (also called a flexible spending account). Some companies offer these optional accounts as part of your benefits package.

 A Health Care Spending Account allows you to set aside a specific amount every year to use towards eligible health care expenses.  The total amount you budget for the year is divided among your pay periods, so an equal amount comes out each pay period. Your health care benefits provider can provide you with a list of eligible expenses.  I use my health care spending account for expenses related to prescriptions, deductibles, co-payments and deductibles at the doctor and dentist’s office, and even contact lenses, eyewear, and eye-care products like saline solution.

The BIG reason you should think about signing up for this benefit if it’s available where you work: the amount deducted from your paycheck each pay period is taken out PRE-TAX (including federal, state, and social security), so you maximize more of your own income, plus reduce your taxable income. And you’ve also budgeted for your health care expenses for the year, so it’s “money in the bank.” 

Here’s how to get started:

1. Review the list of eligible expenses for your benefits plan.
2. Review your medical expenses from last year.
3. Write down any additional eligible expenses you anticipate for the coming year.
4. Include at least money to cover your deductible expenditures.
5. Total it up to see what you’ll need for your health case spending account for the year.
6. Divide the total by the number of pay periods you have per year to see what will come out of your check per pay period.  Remember, this is pre-taxed, so you’re keeping more of what you earn (at least 25-30%, depending on your tax bracket).

One important thing to remember about health care savings accounts: USE IT or LOSE IT. At the end of the year, if you don’t use all the money in your health care savings account, you forfeit the money, so plan for the expenses carefully!

For more on health care spending accounts, Kiplinger.com has some great overviews, calculators, and information. 

Comments

[Marisol Negrete]

You know, I've never had a reason to establish an HSA but with my current job, I don't have the same type of benefits as I did in previous jobs. For example. I don't have a vision plan and I learned that the hard way this year when I needed to replace my contact lenses which are custom made lenses. Ended up paying close to $800 out of pocket for the eye exam and lenses.

I think I am going to figure out how much I will need for next year and establish an account.

[bluess]

I am very chanel shoes replica
interested in your article, thank you!

[air max shoes]

please notice everyone,i have a good news let me tell all my friends that nikejordanlink is a good website to buy
air jordan 2010 air jordan shoes 2010
jordan retro 1 jordan retro 1 shoes
jordan retro 1 shoes cheap air jordan 2010
nike air max 2011 cheap nike shox torch
nike air max 2010
nike air max 2009
nike shox deliver
nike shox torch cheap air jordan 2010
jordan retro shoes jordan retro 1 shoes
air max shoes nike air max
nike air max nike air max shoes
new jordan shoes 2010
nike air max 2011 mens shoes cheap nike shox torch
nike free mens shoes air jordan shoes 2010
nike free womens shoes jordan retro 1 shoes
air jordan 2010 shoes I have a lot of good and very very fashionable christian louboutin boots,pls visit website http://www.christianlouboutinfamily.com/
free shipping,nikejordanlink is discount item retailer and wholesale,you can get cheap shoes that you need there, and you will find it is a good website, and offers a 100% safe purchase guarantee for you.
christian louboutin flatscheapchristian louboutin flats
christian louboutin new arrivelcheap christian louboutin new arrivel
christian louboutin wedges
cheap christian louboutin wedges
christian louboutin sandalscheap christian louboutin sandals
christian louboutin bootscheap christian louboutin boots,
christian louboutin 2011 discount christian louboutin 2011
cheap christian louboutin pumps
christian louboutin shoes christian louboutin slingbacks
christian louboutin slingbacks
christian louboutin bootie cheap christianlouboutin shoes
christian louboutin platforms
I have a lot of good and very fashionable nike jordan shoes,pls visit website http://www.nikejordanlink.com