I received the paperwork from my HR department at work about the flexible spending accounts, and I am now eligible!
Of course, on paper, they look like a great deal. You get to transfer money from after tax to before tax to pay expenses. If I put in the max of around $2500, I can save over $650 per year in taxes! Definitely not small potatoes! Over ten years, the time value of that money at 10% interest, would be around $11,366! Just from deferring some money after taxes to before.
And, with prescription drug co-pays, doctor's c0-pays, and other medical issues (including a daughter who might need braces), it is not a problem to spend $2500 per year.
So, what is my hesitation?
You have to file the receipt, and be reimbursed for the amount that you spend. This sounds like a first class pain in the rear end! Oh yes, if you send in the receipt on Tuesday, they will direct deposit the payment by Thursday, so it is not that long to wait...
Maybe, it is just me wondering how I am going to incorporate the spending and reimbursement into my budget spreadsheet?
But that is a problem that I am sure that I can solve!