ULPT: ALWAYS contribute max to flex spending account
Posted by Feisty_Parsley_83853@reddit | UnethicalLifeProTips | View on Reddit | 43 comments
To get the tax benefit. Don’t have enough actual medical claims? Simply order contact lenses online using web form at any number of contact lens places. Select the box that authorizes them to get a current RX from an optometrist. Enter an optometrist that you have never seen. You will get a receipt for the order but your card won’t be charged/nothing shipped if a real rx can’t be obtained….
Submit the receipt for reimbursement
stupidugly1889@reddit
You can just buy hsa eligible stuff on Amazon, immediately cancel. And screenshot the order
Fastlane1971@reddit
This is the easy way to do it. I bought some leg massager unit and a blood pressure monitor from Amazon. I printed out the receipt and then cancelled the order. Used the receipt to put in a claim for m.
itsthe90sYo@reddit
This just sounds like insurance fraud.
stupidugly1889@reddit
What do you think OP is describing lol?
TheHalf@reddit
Are you aware of what sub you are in?
itsthe90sYo@reddit
Illegal and unethical are not the same thing.
SilverCricket8045@reddit
Insurance can suck a wart. The greedy Lil f_<($
Glad-Switch-4695@reddit
Your fairytales don't exist. Grow up.
articulatedbeaver@reddit
More like tax fraud in this case.
z44212@reddit
Whose money are you taking?
KChasthebestBBQ@reddit
This is literal fraud 💀
Key-Loquat6595@reddit
Or just use a HSA instead of Flex. It carries over.
this is for the people who don’t have enough money or need to do both
TheHalf@reddit
HSA is to be used when you DONT have medical expenses or can afford to pay out of pocket. HSA is a triple tax advantage vehicle (no taxes when you contribute , invest in index funds,.no tax when you withdraw) once you hit retirement, and is best not used until you do retire.
Key-Loquat6595@reddit
Well yes, if someone is maxing out their retirement accounts they also probably don’t have a need to plan as much for medical bills.
TheHalf@reddit
Plenty of people can max out their IRA,. especially depending on how close to retirement they are, and still need to plan for medical bills. In the US, medical bills without insurance can absolutely bankrupt you.
Key-Loquat6595@reddit
I understand bud.
eveningwindowed@reddit
Ethical life protip. If you can absorb your medical costs, pay for them out of pocket and keep the receipts and let the funds in your HSA compound through investments, and then when you’re 65 reimburse yourself with cash
Valpo1996@reddit
Or after 59 1/2 take the money out and pay taxes just like it was an IRA. So bonus retirement contributions.
blakeh95@reddit
65.
HSAs have a higher age than IRAs and other retirement accounts to be penalty-free.
(Of course, it is always tax and penalty free for medical expenses -- and you can keep a receipt from today to reimburse in 30 years).
Valpo1996@reddit
Well still bonus retirement fund for sure. And yes keep medical bills and use the triple tax advantage as much as you can.
Key-Loquat6595@reddit
Oh that’s true!
Key-Loquat6595@reddit
For up to ten years if I’m not mistaken.
alexj5566@reddit
This is the real tip in here.
FLDJF713@reddit
Many health plans only allow HSA with high deductible plans sadly.
Key-Loquat6595@reddit
Yeah, honestly until looking it up I thought a higher percentage of people have HDP’s. It’s roughly 42% of people with employer bought insurance.
I’m sure it’s higher if you take into account the income limits first though.
bobloadmire@reddit
Not an option for most people. You usually get one or the other.
Key-Loquat6595@reddit
There’s no reason you can’t have both that I know of.
HSA depends on income limits and high deductible insurance, which most working class Americans have now.
Hardpo@reddit
Tip: use your HSA to pay for vet bills.
b1ack1323@reddit
Pro tip! Commit fraud!
That’s not unethical that’s just straight up illegal
DisinterestedCat95@reddit
I have my own ULPT regarding FSAs.
If you know that you're going to leave your job in the first part of the year, set up your FSA to as much as you think you can spend before you quit. The funds are available as soon as the year starts, but you'll only have had a fraction of that taken out before you go.
So go ahead, get all your doctor appointments in in January. Buy new glasses for everyone. Stock up on everything eligible. And then go to your new job.
Ninjacakester@reddit
But doesn’t flex not carry over the next year?
Roman_nvmerals@reddit
I work for a benefits company - FSA spending carried over $640 last year
Ninjacakester@reddit
Yeah FSA carries over but not flex.
bobloadmire@reddit
Literally the reason for this post
Shivin302@reddit
Upto $600
BigMikeInAustin@reddit
Different for different companies, year to year.
starwarsyeah@reddit
Correct, which is what the second half of the post is about, scamming a reimbursement so you don't lose it.
tweis@reddit
What happens if you leave or are laid off? I was laid off earlier this year and lost ~$1200 in pretax public-transit funds that I had contributed.
avocado34@reddit
With FSA all funds are available at once. So you can use up all the funds immediately.
If they aren’t used, they are lost.
tweis@reddit
So this is similar to my transit money. All the money was available at once, but since my employment ended immediately, I no longer had access; unless I had prior dated receipts.
Anand999@reddit
I don't know how it works for a transit account, but for FSA at least if you do COBRA you can still access that money.
tweis@reddit
That’s a big plus.
BigMikeInAustin@reddit
For valid expenses, remember to also calculate mileage. This is for any doctor visits, plus to the pharmacy to get your medicine.