Friday, January 07, 2005
Oh, Only If It Were True!
Courtesy of David Asman, FoxNews :
Use It or Lose It
Thursday, January 06, 2005
By David Asman
Most of us spend a lot of our cash on medical bills, no matter how good our insurance.
That’s why some companies have flexible spending accounts that let you put aside some of your pre-tax earnings for medical bills. But there’s a big hitch. If you don’t use every penny in your account in a year, you lose the rest of it. Say you put aside $2,000 for the account and you only use $1,000 in a year … you’re out 1,000 bucks!
Senate Finance Chairman Charles Grassley told the Wall Street Journal that he thinks the use-it-or-lose-it rule "doesn't pass the common-sense test, and it's hurt taxpayers for more than 20 years." He wants to let folks carry over the unused portion of their accounts to the next year.
Sen. Grassley asked the Treasury Department to change the use-it-or-lose-it-rule, but Treasury Secretary John Snow wrote the senator, saying he doesn’t have the authority to change it. Sen. Grassley is confused. "If they wrote it, surely they have the power to change it." So, lawmakers and administration officials say they’re helpless to make a rule change that would let you keep your own money.
Kind of makes you wonder where the buck stops these days inside the Beltway.
And that’s the Asman Observer.
Phil's Observations
Oh, I love the FSA. Instead of giving the government your tax money, save it and use it to help cover medical costs. I love it! I keep out enough each year to cover all of my co-pays, some OTC meds, and special things like glasses or contacts or dental work. It's the best thing since sliced bread. Problem is, though, is that you have to carefully estimate your eligible expenses, then reduce that amount a 'lil so you don't have any left over, 'cuz ya lose it if ya don't use it. I want the rule to change. Let us keep it and have it taxed if we don't use it. What a magical idea!
Only if it were true that it would change. Only if it were true that someone, somewhere inside the Beltway would actually take personal responsibility to get the rule changed.
P.S. I've don't pretty good with my FSA's over the last couple of years. So far, I've only lost about $40. That was only because I didn't realize my first year participating that I could use it on OTC meds.
Use It or Lose It
Thursday, January 06, 2005
By David Asman
Most of us spend a lot of our cash on medical bills, no matter how good our insurance.
That’s why some companies have flexible spending accounts that let you put aside some of your pre-tax earnings for medical bills. But there’s a big hitch. If you don’t use every penny in your account in a year, you lose the rest of it. Say you put aside $2,000 for the account and you only use $1,000 in a year … you’re out 1,000 bucks!
Senate Finance Chairman Charles Grassley told the Wall Street Journal that he thinks the use-it-or-lose-it rule "doesn't pass the common-sense test, and it's hurt taxpayers for more than 20 years." He wants to let folks carry over the unused portion of their accounts to the next year.
Sen. Grassley asked the Treasury Department to change the use-it-or-lose-it-rule, but Treasury Secretary John Snow wrote the senator, saying he doesn’t have the authority to change it. Sen. Grassley is confused. "If they wrote it, surely they have the power to change it." So, lawmakers and administration officials say they’re helpless to make a rule change that would let you keep your own money.
Kind of makes you wonder where the buck stops these days inside the Beltway.
And that’s the Asman Observer.
Phil's Observations
Oh, I love the FSA. Instead of giving the government your tax money, save it and use it to help cover medical costs. I love it! I keep out enough each year to cover all of my co-pays, some OTC meds, and special things like glasses or contacts or dental work. It's the best thing since sliced bread. Problem is, though, is that you have to carefully estimate your eligible expenses, then reduce that amount a 'lil so you don't have any left over, 'cuz ya lose it if ya don't use it. I want the rule to change. Let us keep it and have it taxed if we don't use it. What a magical idea!
Only if it were true that it would change. Only if it were true that someone, somewhere inside the Beltway would actually take personal responsibility to get the rule changed.
P.S. I've don't pretty good with my FSA's over the last couple of years. So far, I've only lost about $40. That was only because I didn't realize my first year participating that I could use it on OTC meds.
Kicknit 1/07/2005