Flexible Spending Accounts: A Good Idea Just Got Better

A Flexible Spending Account has always been a good idea. An FSA allows setting aside pretax dollars for out of pocket medical costs like prescriptions and doctor’s fees. However there was a downside. Come the end of each year a provision that mandated use it or lose it.

Since it’s next to impossible to predict medical costs from year to year, many would-be subscribers stayed away rather than risk losing their money. Of those who did participate, an estimated 14,000,000 families, a significant percentage tended to engage in wasteful, some might say spiteful spending just so they wouldn’t be "leaving money on the table."

The Treasury Department, however has raised that financial barrier somewhat with an announcement that staring in 2014 it will tweak the rule to allow up to a $500 rollover for the following year. $500, because their statistics reveal most people forfeit $500 or less.

If this development has prompted you to change your mind. Pilkington Financial Services in Sterling Colorado can help you set up a FSA.