How Much to Put in a FLEX SPENDING ACCOUNT?

My understanding is that the money is a use it or loss it situation so for the first year I would error on the low side.

Since I don't know what your copays are, what your dentist charges and how much your glasses cost, I can't tell you how much. Add up what these things cost, put in a little LESS than you think you will need, since as you know, you will not get the money back if you do not spend it. When we had one, we put in around $4,500 a year, but no dental insurance, a kid in braces, and $45 specialist copays ate it all up. We are a family of four.

I hate flex accounts and have been burned by these so bad in the past. I don't even bother with them. I think they're totally a scam.

I have just created my own separate account and have money direct deposited in it for medical expenses. Sure there is no tax break, but in the end, are you really getting any breaks if you don't use all the money in the flex account? Instead you're paying the system for something you could do yourself anyway.

I know I always had quite a bit left at the end of every year, and found I was losing too much financially. I dislike my money being tied up in the case of an emergency. And trying to forecast what you will spend isn't much help either. I was always short or way over. Short of being a fortune teller, there is no good way to determine this amount. At least with your own "flex" account, you have REAL bonafide flexibility if you should need the funds for a bonifide emergency other than medical, which I would most certainly try to avoid if I were saving funds for medical expenses, but you never know. I mean, I have bought extra glasses I really didn't need or care to have, just to spend up money so it wouldn't go to the system. So dumb!

Its your money, you should have control over how it is spent, especially any so-called surplus.

Look at your healthcare spending from this past year. If you don't have records you may be able to find them online on your mail order pharmacy and health insurer's website. I know all of our information is out there.

Then you can decide whether you used your insurance more or less than usual. Finally you have to decide how much of a bite you can afford to have withheld from your paycheck. We could probably put so much more into ours but it would be too big of a bite.

I would try to figure out your expenses, but if you really aren't sure, go with the $1,000. The first year I had one I only put 300 or 500 in it (can't remember). Blew through that pretty quick.

New job this year, did the same thing - completely burned through it.

I think 1,000 is a safe number for two. If you have money left towards the end of the year, you MIGHT be able to get your doc to write you some prescriptions for over the counter meds that you could then count towards it (but only with a prescription).

You'll definitely be more aware of your healthcare expenditures once you have a flex account and will have a better idea for next year.

Try and add up your expenditures as best you can from this year and try to add on any extras you forsee for this year. At the end of the year if you have some money left in your HSA you can always go and buy more contact lenses or another pair of glasses to spend down your account. I also think there are some approved over the counter medicines you can use the money on, they will give you all the specifics on exactly what the money can be spent on.

take your prescriptions cost x12 and doctors visits - add a few more just in case - then do that.

When we had the FSA - we put $5K in and used almost every penny of it. Keep in mind - if you don't use it - you lose it.

We have the HSA now - that money stays with you - even after you leave the job.

Do you have flex and HSA? For a flex account you want to put in slightly less than you need if you are guessing but no one in their right mind would guess. It is use it or lose it and the rules changed last year making it harder to use.

Everyone I know who uses them gets quotes and puts in exactly what they need.

You used to be able to use them for things like ibuprofen, now to do that you have to have a scrip from your doctor, same thing for band-aids. This was our brilliant government's way of forcing people to forfeit their money, especially last year since no one read the damn bill. I know a lot of people who are going to kiss over a thousand dollars goodbye in a few weeks. :(

I love medflex accounts even though I don't use mine but it really is a guessing game.

So, look up how much her specialist is, how much are the eye exams and glasses, how much is a check up and cleaning? These offices are used to fielding these questions and will give you a quick answer. Add them up and withhold that. :)

Add up all of the expenses that are certain for the year and that will give you a base figure to start with. I had a flex account at my last job and I put too much in and in order not to lose it I bought my daughter and I both 2 extra pairs of glasses so now we have 3 frames each. Not something I would have done normally, but I sure as hell wasn't going to let the system keep my money.

Calculate what you have decided you will be pay for the year and use that amount. Since this is your first year that's all you can do. I would not go higher. Then next year when you are planning for the following year you can see what you actually used. Also you can look at you tax info from last year and see what you paid for out of pocket expenses. I would plan conservatively. I know we use ours up by June but we have unusual circumstances and we really can't afford to put in more.

We had a Flexible Spending Account this year for the first time ever and I LOVED it! It took all the pressure off going to the doctor because of being short on cash, and prescriptions were a breeze for the same reason. I agree with the others that you should try to get a good handle on what you spend each year and go from there.

You should go conservatively the first year. Actually do the numbers and figure out what you know you will spend for sure. As someone else said, you do NOT want to put in too much.

Calculate your copays for your prescriptions and copays for your daughter. Then put in about $300 for the dentist (unless you get dental insurance with your job, then only put in the amount of your copay).

So if your copays are $30 each for 3 prescriptions, that's $90 per month, $1040 per year just for your prescriptions. If you figure 4 visits for your daughter to the specialist with a $25 copay, that's another $100 for the year. Then $300 for the dentist. If this is accurate, you would put in $1400 in for this year.

If you go through all of that money within 6 months, then you know that next year, you need to put in more. You can also plan things with your doctors. For example, if your dentist says that you have a problem that will be expensive to fix, you can say - how urgent is it? If you can put it off until your next Flex plan year, then you can make sure to put the money into next year's flex plan to cover it.

We have a health savings account (HSA). We have total control over this money and it rolls over each year. If you lose it if you don't use it, I'd put very little in it and start your own account. Or maybe you can ask about a health savings account. We love ours. We put about $1000 per person in our family. But again, this rolls over each year, we never lose any money and we have total control over this account.

You've already gotten some good advice, so I'll just add this: One of the benefits of the FSA, in my mind, is that the money is "there" at the start of the year. This was a huge help for us when all 3 of us had walking pneumonia in February (complete with respective office visits, xrays, and antibiotics) then I had a gall bladder attack (my first one, thought it was a burst appendix) in March! We had the money to cover all of that at the beginning of the year, even though the payments would be coming out of my paychecks for the rest of the year.
Fortunately, we don't have standing prescriptions, appointments, or other pre-existing conditions, and I have an excellent insurance plan through work. So, we've managed to get by with about $500-$750 for the year (family of 3). We do still have to pay for some things out of pocket, but it's nice to know that we have that "backup" money for when our on-hand money is tight. I figure that if I have any money left over at the end of the year, I can find some medical expense that I paid out-of-pocket or I can just buy a few more boxes of contact lenses.
Add up what you KNOW you'll need and go slightly more than that. Find out if yours has a debit card associated with it--that makes it a LOT easier to use!!

Ours is max at $3,000. I put in our family deductible amount which is $1,600. Our insurance after deductible is 100% paid. So I'm just out the deductible. Yay! The last two years have been hell because I've had two back surgeries. So our expenses we a lot and we only paid the deductible. I love our insurance!! Review what your medical expenses were for the last year. I would be conservative for the first year.

I'd go through my tax records for last year and find out how much you spent then and adjust the number to reflect what you're expecting to go through this year, then deduct about $100 from the total so you don't overdue. The whole process should only take about an hour but it's important to get it pretty accurate.

our is maxed as well, because we have a new baby coming and my son uses a lot. i think its 3,000 on ours.