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Tuesday, November 19, 2013

FUTURE TAKEAWAYS PART 2

Written by a union member


I must say that in the original piece that I had just completed and thought, time to take a breather until the next project when I received something in the mail and thought…here we go again.  The company shoots out the next part of their near plans; the Flexible Spending Accounts.  For those like myself, I have really never heard of Flexible Spending Accounts or why would I need to have one; well since the company purposed it then I have a responsibility to me and my family to do the research into this and find the “wolf in sheep’s clothing.”
In my research I found just what that clothing looked like and it’s called “USE –IT-OR-LOSE-IT.”  The clause says if there is any money left over in the plan at years end, that money is forfeit, good God!  The company says, “For example, if you elect the $2500 health FSA maximum in 2014, but had $500 carryover from 2013, you would have access to $3000 during the 2014 calendar year. At the end of 2014, you will be allowed to carryover a maximum of $500 of any unused health FSA funds.”  That means I would stand to lose $2500 if I do not use the account in that calendar year, and guess who keeps the money…you guessed right, the company and would they reimburse you the money, take another guess…NO!  They have not obligation to give the money back.
So Brothers and Sisters, make sure you do more research into the FSA and see if it is something that may suit your medical needs, just remember at this moment we are currently under a 90/10 plan so most may not need this if relatively healthy (knock on wood).  But make sure that your fill out the form and send it back to the company, just so there are no shenanigans on their part in trying to shove this down our throats.  I also included some articles that may help in your decision making.  Stay strong.
 
 
The Trouble with (In)flexible Spending Accounts:
But the pièce de résistance is that any unspent money left over in the accounts at year’s end reverts to the employer, who is free to spend it on anything other than returning it to the employee.
As helpful as these accounts are, they have one big drawback: the use-it-or-lose-it requirement that costs workers millions of dollars each year. The law requires workers to spend FSA contributions by the end of the company's benefit year, which in most cases is Dec. 31. Any leftover account amount is forfeited.

New Healthcare Flexible Spending Account Rules For 2013, Use-It-Or Lose-It Still Undecided
The dreaded use-it-or-lose-it rule says that dollars left in FSAs at the end of the plan year are forfeited. (Some employers allow a grace period of 2 months and 15 days after the plan year to use up the money.) The rule encourages wasteful spending – buying another pair of prescription sunglasses to use up FSA money. And it discourages employees from using the accounts in the first place for fear of leaving money on the table. Unused dollars exceed $500 for more than 20% of those forfeiting FSA money (40% of participants forfeit at least $1), according to the Employers Council On Flexible Compensation.
 

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