They are trying to tell me it is Federal Laws that stops me from sending in my reimbursements requests. They state that once auto reimburse, I can not change.

Please let me kow if I have any recourse.

I think it is definitely worth it to save hundreds of dollars in taxes to send in a few receipts. My provider has direct deposit and also automatic reimbursement with our medical plan, so it works out pretty well!

Any money leftover at the end of the year is forfeited, but you can always spend that on Tylenol, Dayquil, etc. through the end of this year (no OTC in 2011) so it’s not like you would be throwing money away.

I agree in future years it may be harder to estimate how much you will need, but even if you lowball it so you don’t wind up with excess funds- at least you will realize some tax savings!

The idea that saving receipts is a pain is ridiculous. I would save these anyway, as the FSA company (the Third-Party Administrator [TPA]) is in no way responsible for questioning expenses- it ALL falls under the strict IRS regulations, the FSA company is simply the messengar and the “Administrator” (the “A” in “TPA”) of the program.

I’ve had an FSA for over five years now, and have only had expenses questioned for which I can count on one hand. Each time it meant a quick fax or even email with a PDF scan and it was taken care of. The systems flag unusual expenses with strange totals if you suddenly have a new prescription, etc. Any forfeited amounts that the companies or IRS seem to be gaining (mentioned in these posts) is simply due to people’s inability to project expenses accurately.

ANY doctor’s fees or prescriptions most certainly fall under the FSA (split into HCRA (HealthCare) and DCRA (Dependent Care [i.e. daycare]) accounts. ANYTHING THAT IS USED TO TREAT A SYMPTOM (As a rule of thumb) is eligible. So, nothing like vitamins or supplements, or big-screen televisions will fly (nothing preventative).

The FSA allows you to use pre-tax dollars to pay for co-pays and OTC medicine, etc. If you dont’ use the card, you have to pay out of pocket, and then submit for reimbursement. If you want to squabble about 2% bonuses/dicsounts on using your own credit card, the pre-tax benefits far outweigh that, as you are then double-dipping: you’re taxed on your paycheck, then you’re paying tax again on those purchases… and, if you are like most Americans, that credit card debt will not be paid off immediately… meaning you’re paying interest. Not a good scenario.

After hearing from one of my staff last month that his FSA was locked up for a purchase in May, I decided to check mine. Sure enough, mine was locked up for two drug store and one dentist transactions in FEBRUARY. I then had to locate the two receipts from Feb and call my dental insurance to get a statement of benefits that shows what was not covered (like I would make up going to the dentist..it’s just so much fun to get a root canal.) I don’t understand why they needed the dentist records since the charge was put thru at their offices…would I really have paid them over $350 if I didn’t have to?

I will never sign up for an FSA again. I am not 12 and know the rules of using the account. The paperwork is just not worth the tax benefit.

I put aside a small amount this year $650, and have only $1.57 left in the account. I feel it was worth the minor effort I had to put forth. Now on to next year, I need to figure out how much to put aside since we have a baby coming along!