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Archive through October 24, 2008

Reality TVClubHouse Discussions: General Discussions ARCHIVES: Oct. 2008 - Dec. 2008: The only Dumb question is the one not asked (Q&A): Archive through October 24, 2008 users admin

Author Message
Dipo
Member

04-23-2002

Thursday, October 23, 2008 - 11:38 am   Edit Post Move Post Delete Post View Post Send Dipo a private message Print Post    
Wargod, I am so glad you asked this question because I am considering getting the FSA this year because I have to have four teeth cleanings ($190)a year and my dental insurance only covers two. Plus I always have to pay out of my pocket for my glasses and I can recoup that as well. (I am not a good benefits person, I should have been enrolled in this for the last couple of years since I ususally pay about $500 for my glasses after the insurance). I didn't know that I could use it on the co-pays, though, so that is excellent information.

Thanks everyone for the fabulous information!

Kitt
Member

09-06-2000

Thursday, October 23, 2008 - 11:41 am   Edit Post Move Post Delete Post View Post Send Kitt a private message Print Post    
A section 125 plan can be any plan - regular, FSA or HSA - that qualifies as a plan where premiums are paid by the employee with pre-tax dollars rather than after-tax dollars. It'll be up to the company whether they have made their plans 125 or not. Most do, in my experience.

Yes, War, check whether your plan is FSA or HSA. It sounded HSA to me (and that's what my blurb higher up thread was referring to, if it's FSA then ignore all that!).

Kitt
Member

09-06-2000

Thursday, October 23, 2008 - 11:46 am   Edit Post Move Post Delete Post View Post Send Kitt a private message Print Post    
FSA = account where you put money in for medical expenses. You need to make sure you only put in the money you'll need for the year, as with an FSA if you don't use the money you lose it.

HSA = account linked to a High Deductible Health Plan, and you can put as much in as allowed by your plan. The money gains interest and if you don't use it, it rolls over to the next year.

Dipo, with your FSA, make sure you don't put more than you need in, or you'll lose what's left over.

Costacat
Member

07-15-2000

Thursday, October 23, 2008 - 11:52 am   Edit Post Move Post Delete Post View Post Send Costacat a private message Print Post    
Kitt, a Section 125 is a Flexible Spending Account only. It is NOT an HSA. While both plans are pre-tax dollars, there is a huge difference between FSA and HSA.

Julieboo
Member

02-05-2002

Thursday, October 23, 2008 - 12:00 pm   Edit Post Move Post Delete Post View Post Send Julieboo a private message Print Post    
NEW ?: when was the last time that Halloween fell on a friday?

Kitt
Member

09-06-2000

Thursday, October 23, 2008 - 12:07 pm   Edit Post Move Post Delete Post View Post Send Kitt a private message Print Post    
I don't think that's right, Costa. An FSA is a type of Section 125, but Section 125 plans are any plans that allow you to pay premiums pre-tax from salary, rather than with after-tax dollars. So an HSA plan can be section 125 if the premiums are paid with pre-tax dollars.

http://www.ustreas.gov/offices/public-affairs/hsa/faq_employer-participation.shtml

Anyway, the company decides whether the plan is pre- or post-tax... it's the day to day working of the HSA which can come as a shock if people aren't prepared.

Kitt
Member

09-06-2000

Thursday, October 23, 2008 - 12:10 pm   Edit Post Move Post Delete Post View Post Send Kitt a private message Print Post    
Julieboo, it was in 2003.

Costacat
Member

07-15-2000

Thursday, October 23, 2008 - 12:17 pm   Edit Post Move Post Delete Post View Post Send Costacat a private message Print Post    
Kitt, your link includes information about the difference:

HSA Frequently Asked Questions

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< BACK

Employer Participation in HSAs
As an employer, do I own my employees’ HSAs? Can I control how they spend the money in them?

My employees want to contribute to their HSAs but want to make sure they get a tax benefit out of doing so. How does that work?

How much do I have to contribute to my employees’ HSA, as an employer?

Do HSA contributions have to be made in equal amounts each month?

As an employer, do I have to contribute the same amount to every employee’s HSA?

Our company offers benefits through a Section 125 plan, do contributions have to be comparable under these plans as well?

Our company wants to offer “matching” contributions, can we do that?

I don’t offer health insurance, but some of my employees have opened HSAs and I’d like to help them out, what can I do?

How are contributions treated for owners and shareholders of S corps?

How are contributions treated for partners in a partnership or limited liability company (LLC)?

May a self-employed person contribute to an HSA on a pre-tax basis?


--------------------------------------------------------------------------------

As an employer, do I own my employees’ HSAs? Can I control how they spend the money in them?
No, you do not own your employees’ HSAs. The employee fully owns the contributions to the account as soon as they are deposited, just as with a personal checking or savings account to which you would deposit their compensation.

My employees want to contribute to their HSAs but want to make sure they get a tax benefit out of doing so. How does that work?
Employee contributions can be made to HSAs on either after-tax or pre-tax basis. If made on an after-tax basis they should be counted as an above-the-line deduction on their tax return, effectively making their contributions tax-free. If they want to make the contribution pre-tax it can be done through a Section 125 (also called a “salary reduction” or “cafeteria plan”).

How much do I have to contribute to my employees’ HSA, as an employer?
As much or as little as you want (while staying below the legal limit on the account of $2,850 for employees with self-only coverage or $5,650 for employees with family coverage in 2007).

Do HSA contributions have to be made in equal amounts each month?
No, you can contribute in a lump sum or in any amounts or frequency you wish. However, keep in mind that the funds belong to the employee after they are deposited.

^ TOP

As an employer, do I have to contribute the same amount to every employee’s HSA? Employer contributions must be “comparable”, that is they must be in the same dollar amount or same percentage of the employee’s deductible for all employees with the same category of coverage -- for this purpose, generally categories of coverage are either “self-only” or “family”, although consult the comparability regulations regarding the ability to subdivide the family category. You can also vary the level of contributions for “full-time” vs. “part-time” employees, and employees covered by a collective bargaining agreement are not covered by the comparability rules if health benefits were part of the agreement. You do not need to consider employees who do not have HDHP coverage as they are not eligible for HSA contributions.

Our company offers benefits through a Section 125 plan, do contributions have to be comparable under these plans as well?
Section 125 plans (also known as “salary reduction” or “cafeteria” plans) must meet a different set of rules. Under these plans, contributions (both from employer and/or employee) must meet “non-discrimination” rules. These rules require the employer to ensure that contributions do not favor higher compensated employees.

You can disagree if you want, but they are completely different and are guided by different rules.

Julieboo
Member

02-05-2002

Thursday, October 23, 2008 - 12:22 pm   Edit Post Move Post Delete Post View Post Send Julieboo a private message Print Post    
Thanks Kitt!! You always have good answers!!! Thanks for this answer and for all the other answers you have ever given me!!!

Kitt
Member

09-06-2000

Thursday, October 23, 2008 - 12:30 pm   Edit Post Move Post Delete Post View Post Send Kitt a private message Print Post    
You're welcome Julieboo.

Costa, HSAs and FSAs are different, see all my earlier posts. However I have been saying I don't believe your comment that ALL section 125 plans are FSAs is accurate; section 125 plans can also be regular plans or HSAs. But I think we're probably just confusing the question-asker, because this is irrelevant to their question, whether they were talking about FSAs or HSAs.

Julieboo
Member

02-05-2002

Thursday, October 23, 2008 - 12:34 pm   Edit Post Move Post Delete Post View Post Send Julieboo a private message Print Post    
War, I'd say your best bet is to talk to your HR person and ask her the questions. She/he can filter out all the excess info and tell you just what you want to know!

Roxip
Member

01-29-2004

Thursday, October 23, 2008 - 1:19 pm   Edit Post Move Post Delete Post View Post Send Roxip a private message Print Post    
Or the provider of the service is also a good resource.

I didn't budget well this year and used up all my FSA plan rather early...because of changes in our insurance which allowed some expenses to be paid directly out of my FSA plan to my providers. My bad...should have planned better. Which means next year I need to up the amount I put in my FSA...in years prior I have always had to go out and buy new glasses (but I was ALWAYS fabulous and fashionable at least) at the end of the year in order not to leave money in my account.

If you are not investing in a pre-tax account you should...that's just money that you are giving to the government. Just my opinion!

Wargod
Moderator

07-16-2001

Thursday, October 23, 2008 - 1:42 pm   Edit Post Move Post Delete Post View Post Send Wargod a private message Print Post    
Dang, I'm not sure if it's FSA or HSA. I'm not even sure what would be best for us. Our medical expenses are usually unpredictable, Dakota's asthma is under control right now, but I don't know if it'll stay that way and in the past its landed her in the ER when we couldn't get it under control at home. Her meds (asthma and allergy) can be costly because our current insurance doesn't cover name brands, and some of her prescriptions that's the only choice. Or we have times like recently when Darren ended up with cellulitis and it cost us a small fortune in co-pays between drs visits and all the different prescriptions. Both kids need braces and our dental insurance is just terrible. Normal family/kid stuff I guess.

The idea of having to determine how much we might need before the year starts makes me nervous. How do you know that in 6 months you could fall down and break a leg or that this will end up a great year and no one gets anything worse than a stomach bug?

I sent Darren an email and told him to bring the packet home. I want to look at it and write out the questions I already had plus whatever other ones I come up with. We've got until sometimes next week to make a decision. Thanks guys!

Kitt
Member

09-06-2000

Thursday, October 23, 2008 - 2:03 pm   Edit Post Move Post Delete Post View Post Send Kitt a private message Print Post    
If it's an HSA you don't have to worry so much about whether you guess right for the year. The upper limit is usually determined by the plan and if that was more than you can use in the current year the money rolls over to next year, and you can adjust your contributions then. The only problem with contributing less than you need is that you don't get the benefit of using pre-tax dollars for your medical expenses.

If it's an FSA of course you need to not put in more than you expect to need. If you put in too little, the downside is the same as with an HSA, you don't get the tax benefit you could have got.

Have a look at what you're doing now - unless you itemise your medical deductions when you do your tax returns now, then putting any money (that you would use in the current year if it's an FSA) saves you tax.

Kitt
Member

09-06-2000

Thursday, October 23, 2008 - 10:25 pm   Edit Post Move Post Delete Post View Post Send Kitt a private message Print Post    
New Question:
Has anyone heard of the phrase "what all" when used instead of plain "what?" As in "I need to know what all we're going to do next."

I wanted to know what region it comes from.

Oldtex
Member

03-06-2006

Thursday, October 23, 2008 - 10:43 pm   Edit Post Move Post Delete Post View Post Send Oldtex a private message Print Post    
Kitt, that phrase is very common to me here in Texas. I think it is more of a plural question.

Example:
Question: "...what all we're going to do next?"

Answer: "...going out to eat at the steak house and then to the movies or out to a club".

Get to idea? It refers to more than just one thing one is planning.

Don't know if this is just a southern expression. I've heard it all my life. May not be proper, but what is proper in Texas may be foreign to others! LOL

Julieboo
Member

02-05-2002

Thursday, October 23, 2008 - 10:54 pm   Edit Post Move Post Delete Post View Post Send Julieboo a private message Print Post    
Here near Chicago, that is not commonly used. If it is, it would be worded more like "What all will we be doing?"

Northstar
Member

09-29-2008

Thursday, October 23, 2008 - 10:59 pm   Edit Post Move Post Delete Post View Post Send Northstar a private message Print Post    
I've heard it. It was back in my Minnesota days. Except I think it was "what all are..."

Kitt
Member

09-06-2000

Thursday, October 23, 2008 - 11:14 pm   Edit Post Move Post Delete Post View Post Send Kitt a private message Print Post    
I couldn't remember the exact phrase I heard, but your examples sound like it. It seems pretty common then. Thank you!!!

Julieboo
Member

02-05-2002

Thursday, October 23, 2008 - 11:19 pm   Edit Post Move Post Delete Post View Post Send Julieboo a private message Print Post    
What the heck is the difference between a SKOR candy bar and a HEATH candy bar? They are both made by Hershey. They also both taste the same to me.

Kitt
Member

09-06-2000

Thursday, October 23, 2008 - 11:33 pm   Edit Post Move Post Delete Post View Post Send Kitt a private message Print Post    
Julieboo, I've never had either, but in the UK they're called Dime bars, and you've just got me giggling remembering the advert for them! It had a popular comedian comparing them to armadillos (which are crunchy on the outside, smooth on the inside) unlike Dime bars, which are smooth on the outside, crunchy on the inside.

Maybe you had to be there .

Ah no, in the wonderful world of you tube, you didn't have to be there then, you can watch it now!
http://uk.youtube.com/watch?v=yo0qjuA42HA

Wargod
Moderator

07-16-2001

Thursday, October 23, 2008 - 11:52 pm   Edit Post Move Post Delete Post View Post Send Wargod a private message Print Post    
For my question earlier today:

Darren says that this new savings plan is in addition to our regular insurance. We'll still have co-pays for appts and prescriptions but can use the card to pay for the co-pays.

There are no books of info, all the info is online. Unfortunately, he didn't get home til 4:30 today and only had time to eat real quick before heading off to class so we're going to sit down tomorrow evening and look over all info they have online.

It almost sounds too good to be true, though I'll admit to thinking that about our extra vision insurance and we've been very happy with that.

Costacat
Member

07-15-2000

Friday, October 24, 2008 - 8:37 am   Edit Post Move Post Delete Post View Post Send Costacat a private message Print Post    
Then you'll have an FSA. This is the one where you use it or lose it, so think carefully about the amount of copays you pay each year and for other incidentals (lenses, bandaids, whatever).

Landileigh
Member

07-29-2002

Friday, October 24, 2008 - 11:16 am   Edit Post Move Post Delete Post View Post Send Landileigh a private message Print Post    
answer to julieboo:

the heath bar contains trans fat the skor does not.

the heath bar's chocolate is slightly darker than the skor.

the toffee in the skor is darker and richer than the heath.

the toffee in the skor is saltier than the heath.

slight differences in each.


Julieboo
Member

02-05-2002

Friday, October 24, 2008 - 11:27 am   Edit Post Move Post Delete Post View Post Send Julieboo a private message Print Post    
Thank you landi!!!