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I had the option to pay in full for major dental work at a 5% courtesy discount, and I took it. But I just paid off $20,000 in credit card debt this month, so I'm a little gunshy.
Good question. Unfortunately, I only have like $14 left in my FSA for this year. Moving forward, what I want to know is that if I can pay the minimum amount as no interest with my FSA for next year where the limit is $2,500.
Do you have a qualified high deductible health insurance plan where you can get a Health Savings Account? If so, I would put the money into that, then use that to pay for the surgery. For the short term it would be like a FSA and you would save money on your taxes. If you are married the surgery is under the annual contribution amount.
For under $200 in savings it wouldn't be worth it for my to finance something like that with the uncertainty of the current job market, etc. I would pay cash. Also, depending on how much you make and what your other medical expenses are this year, is there any chance of hitting the 7.5% medical deduction on your taxes?
Do you have a qualified high deductible health insurance plan where you can get a Health Savings Account? If so, I would put the money into that, then use that to pay for the surgery. For the short term it would be like a FSA and you would save money on your taxes. If you are married the surgery is under the annual contribution amount.
For under $200 in savings it wouldn't be worth it for my to finance something like that with the uncertainty of the current job market, etc. I would pay cash. Also, depending on how much you make and what your other medical expenses are this year, is there any chance of hitting the 7.5% medical deduction on your taxes?
My employer offers FSA so I may want to put the maximum amount in there. I thought with the Health Care Reform, the maximum amount was down to $2,500 for 2011? This would still save me plenty of tax money.
Well, if I were to lose my job, I still would not have any problem since I have the money to pay cash for this surgery and still have 6+ months of living expenses. I wanted to finance because I can have that extra available for stock purchase investments.
You mean if I paid atleast 7.5% in medical expenses of my salary?
My employer offers FSA so I may want to put the maximum amount in there. I thought with the Health Care Reform, the maximum amount was down to $2,500 for 2011? This would still save me plenty of tax money.
Well, if I were to lose my job, I still would not have any problem since I have the money to pay cash for this surgery and still have 6+ months of living expenses. I wanted to finance because I can have that extra available for stock purchase investments.
You mean if I paid atleast 7.5% in medical expenses of my salary?
A Health Savings Account and a Flexible Spending Account are two different things. A HSA is just that, a savings account that you put money into and that money stays in there until you spend it-year to year vs a Flex Spend Account where if you don't use it by the end of the year you lose it. To get a HSA you have to have a qualified medical plan though.
The 7.5% deal is if you spend MORE THAN 7.5% of your adjusted gross income on medical expenses, not including insurance premiums (except for Long Term Care insurance premiums) the amount over 7.5% can be deducted on your taxes.
A Health Savings Account and a Flexible Spending Account are two different things. A HSA is just that, a savings account that you put money into and that money stays in there until you spend it-year to year vs a Flex Spend Account where if you don't use it by the end of the year you lose it. To get a HSA you have to have a qualified medical plan though.
The 7.5% deal is if you spend MORE THAN 7.5% of your adjusted gross income on medical expenses, not including insurance premiums (except for Long Term Care insurance premiums) the amount over 7.5% can be deducted on your taxes.
My employer does not ofer HSA.
I don't think I will end up spending 7.5% though.
Most likely my employer will offer maximum of $5K for 2011 so I guess just pay cash for it on the card and save good money on taxes. Also get a total of 30% discount overall.
Last edited by Texas User; 10-28-2010 at 05:08 PM..
Most likely my employer will offer maximum of $5K for 2011 so I guess just pay cash for it on the card and save good money on taxes. Also get a total of 30% discount overall.
You will only be able to take $2500 for an FSA next year per the IRS.
You will only be able to take $2500 for an FSA next year per the IRS.
I just checked, it kicks in 2013 for the $2,500 limit.
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