Managing U.S. Flexible Spending Accounts

[mybuyer at roadrunner.com]

I'm about to embark on using a HCSA also. Since I can use the money  
right away at the beginning of the year it seems there should be a  
loan which adds to an asset account on Jan 1, receives regular  
payments from each paycheck, and receives back any balance left in the  
asset account at the end of the term. Each year has a pair of loan and  
asset accounts. The checking account pays to Expenses:Eligible Health  
Care and that value episodically triggers transfers from the asset  
account back to the checking account when the reimbursement check  
arrives. At the end of the redemption period the asset account is  
brought to zero with a transfer to the loan and the excess is lost  
money--that excess loan balance can sit there as a reminder of bad  
planning or good health fortune. Too bad it can't be a tax-free  
donation to your non-profit company.

-Paul



On Jan 5, 2009, at 8:30 PM, David T. wrote:

>> From my perspective, I would continue to handle it the same. At the  
>> beginning of the year, the asset account for the current year would  
>> have a zero balance. Claims submitted against this would send the  
>> account negative, but payroll deductions would chip away at the  
>> negative balance until by the end of the year, when the balance  
>> should be zero.
>
>
....