Any ideas on how I can spend about 800 dollars left in my flex spending account? I misfigured a few things when setting it up last year and only have about a month and a half to spend the rest of it.
thanks
Thats easy…CAF ! Challenged Athletes Foundation.
I just bought a copy of Emmanuels Gift. DAmn ! I was so moved by Emmanuels spirit and the work of CAF that I’m sending a donation this coming week.
If your company updated their plan a year or so ago, you actually have until March 15, 2007 to spend the $800. Most companies did this, you should check with your HR folks.
There have been many years when I am buying hundreds of dollars worth of contact supplies on December 31. This year I am sitting pretty good, only about $60 left and I already have some of that spent, just need to turn in the receipts.
If your company updated their plan a year or so ago, you actually have until March 15, 2007 to spend the $800
Are you certain about that? My HR department communicated to me that any service/work/procedure (I’m thinking about LASIK) needs to be completed by year end but that the paperwork can be submitted until March. Although I don’t entirely trust the people that work in HR as they’re (in my company) famous for their propensity to error.
I went to my optometrist and picked up a pair of Oakleys, with polarized and amber lenses.
Thanks for the suggestions and please keep them coming. I’m going to order some oakleys/rudy projects(probably two pairs). Did anyone see in runner’s world a few months ago a new lens oakley was supposed to release in Kona that doesn’t get so distorted from sweat?
I have to buy or have the work done by jan 1, I have until march to submit paperwork to get reimbursed. It still doesn’t change the fact that I have $$$ burning a hole in my account. I didn’t understand the CAF thing…someone please enlighten me.
lots of massages.
Well, your company really should update the policy. The Fed rules changed last year allowing people to get the money out for appropriate expenses up through March 15. I believe you have to submit for it by March 31. But there is now a 2 1/2 month overlap.
Glasses have always been the best thing, dont forget OTC drugs. for an easy way to see what OTC drugs count, go to Drugs.com they actually mark which ones are approved for flexible spending accounts.
Should be enough time (even if your stuck with Dec 31 date) to get Lasix.
Need orthotics?
My wife is a chiropractor and she sells ‘gift certificates’ to her HSA patients. You get the receipt and the sale, but can use the service next year. Pre-paid plans can do the same thing.
You might want to double-check that. Ours must be spent by 12/31, but you have until march 15th to turn in receipts and everything.
I’m thinking of lasik, but don’t want to commit that huge sum of money until I know that it will work for me. And, finding 5 weeks where I can go w/o contacts and still drive or ride the bike is an issue (glasses and driving or glasses and bike = no go).
clm
Then you’re company needs to update their plan too.
IAMike is correct in that the new fed rules state that you have until March 15th to SPEND money put into your account in the prior year.
From IRS Notice 2005-42:
A cafeteria plan document may, at the employer’s option, be amended to provide for a grace period immediately following the end of each plan year. The grace period must apply to all participants in the cafeteria plan. Expenses for qualified benefits incurred during the grace period may be paid or reimbursed from benefits or contributions remaining unused at the end of the immediately preceding plan year. The grace period must not extend beyond the fifteenth day of the third calendar month after the end of the immediately preceding plan year to which it relates (i.e., ‘the 2 and 1/2 month rule’). If a cafeteria plan document is amended to include a grace period, a participant who has unused benefits or contributions relating to a particular qualified benefit from the immediately preceding plan year, and who incurs expenses for that same qualified benefit during the grace period, may be paid or reimbursed for those expenses from the unused benefits or contributions as if the expenses had been incurred in the immediately preceding plan year. The effect of the grace period is that the participant may have as long as 14 months and 15 days (the 12 months in the current cafeteria plan year plus the grace period) to use the benefits or contributions for a plan year before those amounts are ‘forfeited’ under the ‘use-it-or-lose-it’ rule.
Send this on to your HR folks, they may wish to update your plan document.
Mike
I’m sure they’ll get right on updating their plan…really. I’m sure they are on top of it…really
I think you had until March 2007 to submit your receipts but only until Dec. 31, 2006 to spend all the money you socked away. I think the 3 months is so you’ll have enough time to fake and gather the receipts.
I also have several hundred dollars left. We’ve got 4 kids, so I plan to stock up on Tylenol, Advil, Motrin, contact lens solution, various cough syrups, etc… any over the counter medicines that we use regularly but that I usually don’t buy until we run out. That can easily add up to $100 - 200 right there.
**I think you had until March 2007 to submit your receipts but only until Dec. 31, 2006 to spend all the money you socked away. **
No. If you’re company has updated their plan you have until March 15 of 2007 to SPEND the money.
Here is the IRS notice for the change.
http://www.irs.gov/irb/2005-23_IRB/ar11.html
This change has been in effect for a while now (June of 2005). Your HR department should have already updated your plans.