If your company offers a flexible spending account (FSA) for health care expenses and/or dependent care expenses, you can save money by making pretax contributions to the plan. Typically, the contributions are made through regular payroll deductions based on your annual allocation. You can tap into the fund tax-free during the year to pay for qualified expenses.
However, any amount left over at the end of the year is forfeited, under the “use-it-or-lose-it” rule.
Strategy: Squeeze every dollar out of your FSA before the year ends. You might even move up some nonemergency medical visits from 2010 to 2009.
Companies are allowed to extend the use-it-or-lose-it deadline to 2½ months after the close of the tax year. Therefore, you may have until March 15, 2010, to exhaust your funds (but only if your company plan permits the extended deadline).
Tip: It’s also important to analyze the allocation needed for the coming year. You don’t want to contribute too much or too little.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/10437/your-fsa-use-it-or-lose-it-by-year-end "