Hopefully this fits in with the guidelines of this tax NG. If not, sorry!
Does anyone know exactly where the rules are (in some Federal tax code, perhaps) that stipulates the rules regarding HCRA and the fact that if you don't use up your declared value, you lose the money? And where some discussion might be that explains WHY that rule is the way it is?
My daughter decided against using the HCRA for her first year in the work force because she didn't know what her annual bills out of pocket would be and is nervous about foregoing hard earned cash. Thus, she loses out on the value of the savings. (I know she could REALLY low-ball the figure, but then, what's the point??)
Seems to me (without perhaps understanding the reasons) why 'they' could simply give you the same tax benefit without a third party holding onto your money, and losing it if you estimate too much. The rules are onerous on this it is, for this example, causing my kid not to participate.
I don't want to get into a discussion about this here; just the pointers so I can get into the discussion with my Congress person. I'm pretty annoyed. Must be something I'm missing.