Originally Posted by TimFountain (Post 11084142)

Not sure how many others here take advantage of FSA's but I'm counting myself in the no camp as of next year. Apart from seemingly always having to provide receipts for everything (makes you feel like you are cheating them), I just had a situation that proves that corporate robbery is alive and well.

Back at the end of Nov I had some dental work done. Paid $260, which was my ESTIMATED co-pay on the FSA card. Two weeks later (mid Dec) I get the usual 'please submit more details' email, which I duly do. Just after Christmas I get a letter from my dentist with a check for $116 attached saying that insurance paid more than the estimate and here's the difference back. Around Dec 28th I get an email saying that the FSA overpaid and they want my money back! By the time I contact them it is the new year and they are insisting that they get repaid for the overpayment.

I ask ok, fine, but since my company didn't allow a roll-over (IRS changed the rules late last year and most companies decided not to allow roll-overs) what will happen to the money? Get this -they tell me that since we are into the new year and my plan kdoesn't allow for a roll over the money is forfeited (going to my employer with a service fee deduction). I don't blame my employer here BTW.

So my money, that I have in my bank account (and yes I would pay tax on it if that were an option) has to be repaid and I have no option to spend it. Of course if I had any money left before the end of the year I would have spent it but I didn't due to the FSA's tardiness in getting this all figured out.

At this point I am getting more than a little annoyed and ask what will happen if I don't repay. They said they would suspend my FSA (which they have done), they would report me to the IRS and the account will go to collections along with penalties and interest. To cap it all since open enrollment is now closed, I can't withdraw from this years FSA contributions, which are $50 per month. So basically they are holding me over a barrel.

I can't wait for open enrollment this year to select no on the FSA. Good riddance!

Grr

- Tim, Aka grumpy old man

Originally Posted by TimFountain (Post 11084142)

IRS changed the rules late last year and most companies decided not to allow roll-overs

Originally Posted by Sugarmooma (Post 11084199)

I agree, it can be very frustrating and unless it gets changed to a Health Saving Fund I think I might drop mine next year.

It was great to have when I needed it to help with some of our recent expences but I get so annoyed about having to keep sending extra information as proof the money was used for medical expences. I mean, when the receipt has the name of the hospital on it and says surgery center what else could it be for??

Originally Posted by AmerLisa (Post 11084207)

Ohhhh I dunno, SM... Haven't they caught on that you secretly book all of your Caribbean holidays that way? :sneaky::D

Originally Posted by Pulaski (Post 11084166)

Which is why I have a Health SAVINGS Account. My money goes in, pre tax, and it remains my money until I spend it on qualified healthcare expenses. :nod:

Originally Posted by AdobePinon (Post 11085039)

Just watch out for all the nickel and dime fees that HSA providers try to charge.

Originally Posted by Duncan Roberts (Post 11085302)

So far I haven't had any and I haven't seen any listed, just a surprising interest rate that makes a little money each month.

Originally Posted by kins (Post 11084998)

I hated our FSA. They constantly screwed up my refunds or demanded receipts for situations that didn't warrant them (which they eventually admitted every time after keeping me on hold for 20 minutes).

At one point they were trying to get me to provide receipts for a $11 payment, which I had paid using the last $11 in my account. I had no intention of enrolling the following year and had already cut up my FSA card. They told me that if I didn't send the receipts they would suspend my card and that they might try to get my company to take the $11 out of my payroll.

I told them to go for it if that was the kind of way they chose to waste their own resources.

I put in an official complaint to my employer about them, and I obviously wasn't the ony one as they were dropped as our provider at the end of that year. We also stopped selling their services as an FSA provider alongside our products.