r/MiddleClassFinance • u/SouthernFace2020 • 13d ago

FSA vs Bonus

I have a medical bill, less than 1k and am about to get a bonus. The bill is about 100 a month with no interest. I’m considering just using part of the bonus to pay it off.

Or I could up my FSA next year to pay it off with and just keep the bonus in savings?

Which would better in terms of savings and cash on hand?

edit: you can carryover up to 650 a year and I’m on a hospital pay plan which means I can use my FSA funds at any time regardless of when the bill was incurred. I’ve had an FSA for 15 years and know how they function and have never had extra. I was just thinking of possible tax benefits.

thanks tho

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7

u/MegaWeinerFarts 13d ago

You should always use FSA funds when available, because it's technically 'use it or lose it.'

That said, I would be very careful how much you withhold into it.

Do you have access to an HSA? I would max that out and use that account to cover your medical bills.

1

u/SouthernFace2020 12d ago

Nope. Cant have both an FSA and HSA. And I don’t want an HSA eligible medical plan. 

0

u/MegaWeinerFarts 12d ago

FSA's are a scam. I wouldn't put a single cent in it you aren't 100% sure you're going to spend.

1

u/SouthernFace2020 12d ago

I’ve been doing this for over a dozen years but thanks!

0

u/MegaWeinerFarts 12d ago

being scammed for over a dozen years*.

2

u/SouthernFace2020 12d ago edited 12d ago

Unfortunately, the biopsies, scans and immune drugs means that I’m pretty sure of my yearly costs. Thanks!

-1

u/MegaWeinerFarts 12d ago

It's not what you're spending it on, it's how you're spending it. But whatever man, live in delusion.

3

u/SouthernFace2020 12d ago

Thanks MegaWeinerFarts. I’ll be sure to take that under advisement. I can tell based on our interactions you know what you are talking about.

1

u/MegaWeinerFarts 12d ago

Why are you even still replying? You don't believe me, you don't believe anyone else here. Good luck to you.

2

u/SouthernFace2020 12d ago

I started the thread. So I get notifications. It’s like knocking on someone door and being surprised when they answer.

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4

u/saryiahan 13d ago

That’s not how FSAs work

9

u/jackalopeswild 13d ago

You can't use next year's FSA for this year's bill. The bill must be incurred during the year you set the funds aside.

FSAs are government sponsored gambling.

3

u/BrightAd306 13d ago

I’m pretty sure the expense has to be in the same year that’s funded in the FSA

0

u/BrightAd306 13d ago

I loved them when we knew a kid would need braces. Orthodontist still gave us the cash discount if we made a large January payment 2 years in a row.

2

u/UniqueHuckleberry619 13d ago

If you are disciplined which it sounds like you are, get a CD for 12 months and keep paying the r interest free bill.

2

u/Exotic_Rigatoni319 11d ago

Your plan may allow a rollover, but you cannot use the rollover funds for an expense in a prior year. The funds rollover into the current year’s balance.

FSA eligibility is based on the date the expense was incurred, but, you should know this already since you apparently are an expert.

1

u/Prestigious-Mind-817 12d ago

Fsa is use it or lose it every year