..........FSA (Flexible Spending Account) - pretax
You can put in money through your job/wages (pretax) up to a limit. I believe we submitted a form with receipt.
However, whatever you don't use, you lose by the end of the year. It was terrible. How can you "plan" for most of your medical expenses? Well, let's see... this year I'm going to foresee breaking a leg and maybe having an appendectomy? (Yes, I realize you can plan for some things, but with medical, I'd argue there is a lot that you can't foresee.) I am personally not a fan.....
Thats it. I confused them. Thanks.
What I was describing as HSA was actually FSA.
I had FSA, but 10 years ago, and you could NOT roll over the balance at the end of the year, so you could lose it. My employer was touting it for people who new they would need monthly chiropractic or a child who would need braces next year ect. It was worthless for unforeseen illness. I had to keep recipts. Since it was company sponsored and managed, I think I had to turn in recipts to HR! - no hiding illness then either. That was also 10 years ago.
Yes, yours was a FSA. I agree it's worthless for unforeseen illnesses/expenses.
The HSA came later, and they are much better than FSA in regards to you don't lose the money.
Also, with the FSA, if you switched jobs, you lost the money. But with a HSA, it stays with you.
Similiar with a daycare (dependent care) FSA, if you changed jobs or no longer needed to pay daycare (one parent decides to stay home or you lose your job and don't need daycare for awhile), you lose that money at the end of the year. So much risk with FSA.
What is great about
a HSA is that if you don't use it one year, you can use it the next year or even in ten years if you need it then.
I just don't know why they have FSA anymore.