[GNC] flex card for medical expenses

[David T.]

Larry, 

That sounds a lot like a US Health Spending Account (HSA). With an HSA, a person chooses an amount that will be allocated for medical expenses the following year, and an amount is deducted from their paycheck over the year (pretax) to make up that amount. Originally, the money was lost if not spent at the end of the year, but at this time, some of that allocation can be carried over to subsequent years.

I have set up our HSA using a few accounts. There are annual accounts in equity and liability. At the beginning of the year, the full amount for the year (in your case, $600) is transferred from equity into the liability. The payroll deductions go into the liability account and reduce that balance ultimately to zero. Payments from the HSA provider go into the equity account until that account (ideally) reaches zero as well. 

I'm sure I'm missing tons here, but that's what I've got to offer. 

David T. 

On May 24, 2026 9:19:49 PM GMT+05:30, Lawrence Whalen <lwhalen26 at gmail.com> wrote:
>Hi,
>
>I'm hoping someone can give me some guidance on how to set up a medical
>flex card that has a $600 limit, but has $50.00 deducted each month from
>salary.
>
>The flex card full amount can be used at any time the deductions will just
>keep going. If it is exceeded you have to pay out of pocket.
>
>I am trying to figure out accounts to set up and how to set a cap per se
>that cannot be exceeded because once exceeded you can no longer use it.
>
>Thank you all for any help.
>
>Regards,
>
>Larry
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