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Changes in Health Care Flexible Spending Accounts

This year, flexible spending accounts or FSAs get a little less flexible. There have been some changes in the rules of when you can and can’t use them. Because of changes in the law, 2011 will be different. Here is what you need to know and how you can work with the new rules to make sure that you can still get the health care and supplies that you need. First of all, let us review what an FSA is. It is an account through your workplace. In this account, you can set aside money that is removed from your … Continue reading →

Flexible Spending Accounts

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If you have access to a flexible spending account for medical or dependent care, you should be taking advantage of the tax savings. But, these accounts can be tricky… so let’s discuss them for a bit. A flexible spending account is set up through your employer. It is almost like a savings account, except it doesn’t earn interest. What is does is allow you to set aside money tax-free. This reduces your overall income reported on your tax statements. Depending on the amount of expenses you have, this can move you into a lower tax bracket or at the very … Continue reading →

Take Advantage of Flexible Spending Accounts

This is the time of year for open enrollment at many companies. It is a great time to consider setting up flexible spending accounts in order to save money. A flexible spending account allows you to save money for health care and dependent care expenses. This money is taken out of your pretax pay, and can lower the amount of taxes, which you pay. This can save you money. If you plan carefully you will be able to save a significant amount in taxes for those out-of-pocket expenses. The dependent care expenses can be used to pay childcare or adult … Continue reading →

Health Savings Accounts

You may want to take advantage of a health savings account. (This should not be confused with the flexible spending account that is often available through employers.) A health savings account is designed to allow you to save money tax free for out-of-pocket health care expenses. There are several strict rules associated with this account, and so you will need to make sure that you qualify before you open one up. In order to open a health savings account you need to have a high deductible health insurance policy. This policy is often referred to as catastrophic insurance as well. … Continue reading →

Time to Clear Out the Medicine Cabinet

January is a great time to get the medicine cabinet cleaned out. In fact, the American Pharmacists Association, encourages everyone to make an annual New Years clean out of their medicine cabinets. Not only will you be reducing clutter and gaining more space, but you may also be securing your health. Old medications and cosmetics can at best be ineffective and at worse be dangerous. So, pick a day this month to get ‘er done. Medicine cabinets can quickly become filled with all sorts of expired and unused medication. This is because each month, especially in the winter, can bring … Continue reading →

Giving and Taxes

Hopefully you have already been aware all year of the changes in donations and charitable contributions in regards to your taxes. This is a big year of transition; therefore if you haven’t been keeping adequate records, you may have lost an opportunity for a tax deduction. Still, there is one month left of 2007 and many individuals give the most during the holidays. Therefore, it is worth mentioning some of these changes as we head into this season of giving. The main change in regards to your taxes comes with the paperwork necessary to prove a valid donation. This is … Continue reading →

Are You Working to Pay for Child Care?

Are you working primarily just to pay childcare? Would you better be able to help your family financially by staying home? These are important questions to ask yourself periodically. I understand that not everyone wants to be a stay-at-home parent. That decision often goes much deeper than your finances. However, it is important to realize that your job may be costing you more than you realize. If you do want to stay home, here are some things to consider. 1) Subtract the amount of your childcare costs from your take home pay, and ask yourself if that amount of money … Continue reading →

It’s Time for Open Enrollment

It is time for open enrollment again. This is a great time to adjust your benefits and the amounts that you put into your flexible health care savings and dependent care savings accounts. You will want to carefully consider the changes that you make. You may decide to discontinue some benefits or you may decide it is time to pick up a few extra policies. When it comes to your flexible health savings account you should take into account how much money you spent on finances last year. Then you should look at any major expenses from last year that … Continue reading →

Do Your Lifestyle Choices Affect Your Budget?

Have you considered how your lifestyle affects your finances? I am not referring just to eating out, spending money on new clothing every month or keeping up with the Joneses. I am talking about your lifestyle in regards to your health choices and the way you care for yourself and your family. Here are three specific areas that you may consider evaluating. Of course you ultimately will make the decisions about whether or not you feel that you need to change in these areas. 1) One area that really eats into the budget is smoking. The amount that you spend … Continue reading →