[tabi] Re: reminder for those using Medical Reimbursement accounts
- From: "Chip Orange" <Corange@xxxxxxxxxxxxxxx>
- To: <tabi@xxxxxxxxxxxxx>
- Date: Fri, 17 Feb 2012 15:08:10 -0500
Sorry, I made one mistake (at least) in my description of MRA savings: I
forgot that your social security and medicare taxes are also not charged
against these expenses, so typical savings is much more like 40% not
25%.
From: tabi-bounce@xxxxxxxxxxxxx [mailto:tabi-bounce@xxxxxxxxxxxxx] On
Behalf Of Chip Orange
Sent: Friday, February 17, 2012 2:50 PM
To: tabi@xxxxxxxxxxxxx
Subject: [tabi] reminder for those using Medical Reimbursement accounts
If you're using a medical reimbursement account (also called a flexible
spending account), and you didn't spend all the money you set aside in
the last calendar year, just a reminder that you are allowed to charge
items purchased in the first part of this year (up to March 15th I
believe) to last year's account, allowing you hopefully to use the rest
of it.
If you don't know about this option, for those employers who offer it,
it allows you to charge medical/dental costs, and costs for blindness
related items, to a special account which you load with automatic
withdraws from your paycheck. This money isn't subject to income tax,
so you can save 20 to 25% on each purchase. Even guide dog expenses are
allowed.
The state now gives you a debit card to use for these purchases, but you
can also submit receipts and a claim form and you'll be reimbursed.
You do have to wait for open enrolment (usually) before you can sign up,
and you do have to name the amount you wish to be used this way (and you
can't change it, and you don't get any back if you don't use it all, so
it takes some thought to come up with the right amount).
This year I set aside $2500 for myself and Allison (this also covers
spouse's medical expenses), and mine is already used up in the first 6
weeks, so obviously I wasn't that good at estimating!
Chip
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