Funny Math – Yet Again

I am researching our best option for health insurance through my employer and seriously considering switching from the PCA to the HRA which has a FSA or an HSA.  Say that 3 x’s fast.

FSA = Flexible Spending Account.  I went through the ALEX tool and learned bunches.  I think I am confusing plans FSA may really be HSA or vice versa.  Then they add LFSA for dental and vision only.  Maybe I learned nothing? lol.

Here is what my notes say:

  • Must use for qualified healthcare
  • Can contribute up to but not exceeding 7k per year (tax-free)
  • Can contribute up to but not exceeding 8k per year (tax-free) if you are 55.
    • For this I am considered 55 since anyone who turns 55 in 2019 gets the higher limit.
    • Who hoo – yay us!
  • You will pay taxes and 20% penalty for early withdraw (I need to go back and re-listen because of the boat example which deserves its’ own post … wait for it ala Barney Stinson)
  • You may withdraw if you are 65, disabled, or dead.

C’mon folks when is the last time a dead person pulled money out of anything?


Hearing that made me giggle as I listened to ALEX and I promptly thought of the line:

I see dead people.  Hayley Joel Osment in The  Sixth Sense

I am a weirdo.  But in a good way right?  Say right.  Or otherwise humor me.  Puhleese. Hehe 🙂

As always, more to come.

8 thoughts on “Funny Math – Yet Again

  1. I don’t know why they need to make it all so confusing! Fortunately we (hubby and I) are at the age where there are no penalties for early withdrawal but we still have to pay taxes on some of it.

    Liked by 1 person

    1. it is very confusing. They have an enrollment far with people we can talk to and I have done that. I watch and/or read all the literature provided but still hard to choose which is better.

      Liked by 1 person

      1. Especially when you are young. My daughter just started a new job after she finished college and is making significantly more money now than she has been at Starbucks and I’ve tried to tell her that now is the perfect time to start some kind of retirement savings because she won’t notice the money being gone from her paycheck but the things the new job offered her were SO confusing even I couldn’t understand what they were asking her to choose!

        Liked by 1 person

      2. You are so right! There is exponentially more to be earned starting now at her age. Hopefully she figures it out. Only thing I know for sure is that if there is a match, take it! 🙂

        Liked by 1 person

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