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.