Nov 18th, 2009
Waiting for Flex Spending
My employer is offering for the first time (to my employee class, anyway), a flexible spending account, where I can deposit pre-tax dollars to pay for medical expenses. For someone like me who is in the 28% federal tax bracket and pay about another 5% to the State of Hawai’i, this can be a huge thing–a 30% discount.
Interestingly, a few weeks ago, my prescription glasses broke in a basketball game. I am currently using my backup pair, which is many years old (actually, my broken pair were already many years old) for driving only.
I have yet to make a new appointment for a glasses prescription because I’m waiting for the year to end so I can take advantage of this flexible spending account. Glasses are not a trivial expense, and 30% is a substantial savings. I’m safe for now with the backup pair, although I probably lose a few style points (and mistake friends for others and vice versa walking around).
January 1st is not that far away.
Nice blog! So, you are waiting until the beginning of next year to buy new glasses. I think that is a good idea. One thing to keep in mind is that most flex spending accounts operate on a “use it or lose it” basis, meaning that any balance you have in the account at the end of calendar year is forfeited to your employer. So, try not to leave any money on the table at the end of the year.
Having been downsized twice in the last decade, I can tell you that the “use it or lose it” provision also applies if you are terminated without cause (i.e., laid off). This may seem totally unfair, but that has been my real life experience.
[...] I promised myself (as my backup pair of glasses used for driving falls apart even more), I went to the ophthalmologist on January 4 to get a new prescription for glasses. Since I now have access to a flexible spending account at work, it’s really a great time to [...]