12 thoughts on “We Ran Out Of FSA Money”

  1. When my wife and I had FSA’s we typically would overestimate a little to not run into a situation where we would run out. So, we usually would have a little bit of money to spend at year end on things to avoid losing it. As we run our own business now, we’re taking advantage of an HSA so we don’t lose the money st the end of the year.

    • It was always fine overestimating in the past as you could do that end of year shopping spree, but now that you can’t use it on over the counter stuff, you have to be a little careful or plan on end of the year doctor visits, which are a little harder and time consuming 🙂

  2. Both my wife and I are self employed and I have never really looked into the options available to us. I would be worried about having extra money left in there at the end of the year. Would you just lose it?

    • Some plans offer a grace period where you can use it for a period into the following year, but otherwise, yeah, you’d lose it if you still had a balance. You could always schedule some non-essential visits or see if you could pull ahead any work that you were planning on for the next year. Used to be that you could use it on over-the-counter medication purchases (Tylenol, band-aids) so you could just go to the drugstore and stock up, but to offset part of the costs of Obamacare, they took that away a couple years back.

    • HSAs are great and we have considered them, but with kids, the high deductible part has scared us. Still something we’ll look into every year, AND if the amount I’m saving on the side goes unused, that could be an additional driver into moving to the HSA since we’d already have medical money set aside.

  3. I usually look at what I spent in the prior year and think about what I will spend in the new year. With a FSA, you always want to underestimate your bills, because you will lose any unused portion.

    • I agree. I always look at the last year or two, and I also plug in any changes that would take place as a result of insurnace changes (e.g. co-pay changes between years) and factor that into the estimates. I also go on the low end so that it doesn’t get unused.

  4. I don’t understand… You deposit a certain amount of money in an account, get a deduction for it but, if you don’t use it by year’s end, it’s just gone!? It’s your money!

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