Q MY employer offers a flexible spending account that employees can use to pay for out-of-pocket medical expenses. But if you don’t use everything you’ve contributed by the end of the year you lose the balance. Is this a smart plan to join?
A ‘Tis the benefits open-enrollment season, when employees need to make choices about their benefits for the upcoming year. Many find the options difficult to navigate, which often results in inertia and employees not taking advantage of the many cost-saving opportunities available to them. If your company offers a flexible spending account and you’re not participating, then you’re missing out on a real money-saving opportunity. Generally, employees contribute through payroll deduction, and can withdraw the funds to pay for medical bills. Funds set aside in the account escape both income tax and Social Security tax, so you save.
The caveat is that once you set the amount of your contribution for the year, you’re not allowed to change it or drop out of the plan during the year unless you experience a change of family status. And by law, you forfeit any unspent funds at the end of the year.
However, the types of expenses eligible for reimbursement have broadened in recent years, practically eliminating the risk. Many over-the-counter items are now covered, such as cold medicines, first-aid items, digestive relief, etc. So if you find yourself with money at the end of year, you can use it to make a Duane Reade run. Check with your benefits department for a list of items eligible for reimbursement – because there are exceptions, and I’d hate to be responsible for you purchasing a year’s supply of cotton balls and teeth-whitening strips only to discover they aren’t covered.
Q Is that free resume review offer still going on?
A Sorry folks, my inbox is as stuffed as Thanksgiving turkey, and the offer was only valid for a week. Anyone who missed the deadline will have to stay tuned until I forget how much work this is, and make the offer again. In the meantime, we’ll do what we can in this section to answer your resume questions and reduce your angst.
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