Is there any way to setup my FSA account to countdown from the total amount that will be deposited to zero. I'm trying to find an easy way to know when I'll run out of money.
Right now I have it setup as an asset account and have the payroll deductions go into the account and make entries whenever I pay out of the account. The balance agrees with what PayFlex says I have in the account but not how much is left until I run out of money.
Is that the same as an HCRA (healthcare reimbursement account)? Things have changed so often that I tend to get confused. I'm glad for all the options we're getting, but it is still a little confusing.
Here's how my HCRA works, and I assumed ALL of them work the same way. I could be wrong.
Each year I declare how much money I want taken out of my check to go into the HCRA for that year (there are limits set by law as to how much, but I forget them now). So, if I say I want to contribute $2000 to my HCRA, then as soon as that benefit year starts, the $2000 is available to me even if I've only so far saved $38.46 in my HCRA (the weekly payment to reach $2000 in the course of a year). So, how much money has already been put INto the account is irrelevant, because as soon as the year starts my account starts with $2000 of benefits available to me.
Now, Flexible Savings Accounts may be something different. I know those were around for a few years before HCRAs came around. What I don't know is if HCRA is a form of FSA or if there are different regulations. I'm sure others will chime in.
Assume $240.00 annual. On Jan 1, make an entry between FSA - Annual (as a Credit Card - I prefer to use this as the recon feature is easier) and a category FSA for $240.00. When you receive your January
31st paycheck of $100, make an entry into Check and FSA - Annual (reducing the amount you have committed to). Assume $25.00 co-payment in Feb - make an entry from Checking (how you paid for it) and the category Medical. When you file the claim and get reimbursed make an deposit into Checking for $25.00 against the category FSA. The end result:
Checking = $80 + 25 less 25 = $80 FSA - Annual = ($240) + 20.00 = $220 (the balance owed the FSA - this is the Credit Card Account) FSA - $240 less 25.00 reimbursement = $215 (the balance in the category is the amount of money you still have to spend - goal = $0.00 by the end of the year any remaining balance at the end of the year is unspent money) Medical = $25
Dick Weaver once wrote : "Setup two quicken accounts: FSA asset and FSA liability. Say your years FSA deduction is intended to be $1000. Begin the year with a transfer of $1000 from the liability account to the asset account. This accurately records your starting position: You are committed to pay(deduct) $1000 and you have $1000 you can spend on medical care anytime during the year. FSA Payroll deductions are transfers to the liability accout. WHen you receive payment for a claim, that is a transfer from the asset account to your checking account (wherever you deposited the payment).
At year end the liability account will be zero, paid off by your deductions. The asset account will be zero, either spent or written off."
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