I am still angry about losing the money in my dependent care FSA for 2019

[Anonymous]

I don't get why it can't roll over... even my FSA money rolls over a bit. (This thread isn't for me though, I used the 5k in the first 2 months of the year as my kids are in daycare. I also use all my FSA money)

[Anonymous]

Anonymous wrote:Just saw this posted on the FSA FEDS site. Maybe there is still hope for you?


Consolidated Appropriations Act 2021
Dec 31, 2020


The new relief stimulus bill provides employers with options to minimize impact to employees related to flexible spending accounts (FSAs), including unused FSA funds. FSAFEDS will review these changes and share more information soon.

OP here. Thanks, this is awesome news. I'm glad Congress included this in the bill. If my employer doesn't allow it, I'll at least be able to focus my anger appropriately.

[Anonymous]

Anonymous wrote:I don't get why it can't roll over... even my FSA money rolls over a bit. (This thread isn't for me though, I used the 5k in the first 2 months of the year as my kids are in daycare. I also use all my FSA money)

because most of these funds were accidentally created by tax laws that no one really understood when they were passed and have been regulated over time.

https://en.wikipedia.org/wiki/Flexible_spending_account#History

[Anonymous]

Anonymous wrote:I have always hated the system where you have to guess (months before the year even starts) what your needs will be for the whole year and then you are penalized by losing the money if you guess wrong. I think that is extraordinarily unfair (especially when it comes to the health care FSA because there is no way to know in advance what your healthcare needs will be or how much they will cost!). I don't understand why Congress hasn't required that people get the money they deposited back! Thankfully, we were given the option to stop contributing at some point last year, but I still lost money. It's not going to break us, and we are luckier than many people since our jobs are safe, but it still irks me to no end.

Dude - Just make up expenses and submit them. I used to do them when we were contributing. Examples: Take last year's receipt (of a service provider you will likely be using again next year), change the date, scan and submit; get someone in your close family/friends to give you receipts for childcare. You can reimburse them for tax impact or tip them if they are younger teens.. Worse case scenario, expense gets denied.

Yeah, yeah.. I know ethics and all that BS. but this whole system is setup to milk people like us. The law could have simply allowed you to deduct this amount but no, they have to set up a convoluted scheme that required someone to adminster it and those people end up taking your money if you don't incur the expense or forget to submit expenses. Scam!

[Anonymous]

This is not a required program. Stop doing it or underestimate if its going to make you so angry.

[Anonymous]

The law was changed under CARES Act for people to have a limited open season if your needs changed. For example, in late 2019, if you elected to have $5k in your FSA and you really only needed $3k, some FSA providers allowed to increase/decrease/stop FSA elections. this was definitely the case for feds as I received this notice. additionally, CARES also allowed over the counter drugs and even menstural products to be qualified expenses so if you have any of those expenses, you can get reimbursed for those.

as for you wishing for your pretax money back...you really shouldnt be able to shelter money and then figure out if you don't use it, take it back later. our tax system is, in many ways, a look back period so whatever you're proposing would effectively benefit higher income earners who would shelter their money from taxation.

in short, let's call it what it is: tax evasion.

[Anonymous]

Anonymous wrote:The law was changed under CARES Act for people to have a limited open season if your needs changed. For example, in late 2019, if you elected to have $5k in your FSA and you really only needed $3k, some FSA providers allowed to increase/decrease/stop FSA elections. this was definitely the case for feds as I received this notice. additionally, CARES also allowed over the counter drugs and even menstural products to be qualified expenses so if you have any of those expenses, you can get reimbursed for those.

as for you wishing for your pretax money back...you really shouldnt be able to shelter money and then figure out if you don't use it, take it back later. our tax system is, in many ways, a look back period so whatever you're proposing would effectively benefit higher income earners who would shelter their money from taxation.

in short, let's call it what it is: tax evasion.

Before pulling out your soapbox, try reading what the OP wrote. None of what you wrote is relevant.

[Anonymous]

Learn how to photoshop or edit PDFs if you come up short for the year. I didn't tell you that!

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have always hated the system where you have to guess (months before the year even starts) what your needs will be for the whole year and then you are penalized by losing the money if you guess wrong. I think that is extraordinarily unfair (especially when it comes to the health care FSA because there is no way to know in advance what your healthcare needs will be or how much they will cost!). I don't understand why Congress hasn't required that people get the money they deposited back! Thankfully, we were given the option to stop contributing at some point last year, but I still lost money. It's not going to break us, and we are luckier than many people since our jobs are safe, but it still irks me to no end.

Dude - Just make up expenses and submit them. I used to do them when we were contributing. Examples: Take last year's receipt (of a service provider you will likely be using again next year), change the date, scan and submit; get someone in your close family/friends to give you receipts for childcare. You can reimburse them for tax impact or tip them if they are younger teens.. Worse case scenario, expense gets denied.

Yeah, yeah.. I know ethics and all that BS. but this whole system is setup to milk people like us. The law could have simply allowed you to deduct this amount but no, they have to set up a convoluted scheme that required someone to adminster it and those people end up taking your money if you don't incur the expense or forget to submit expenses. Scam!

+1.

[Anonymous]

Don’t fudge it people. They do randomly call service providers.

[Anonymous]

How much money has this cost you?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have always hated the system where you have to guess (months before the year even starts) what your needs will be for the whole year and then you are penalized by losing the money if you guess wrong. I think that is extraordinarily unfair (especially when it comes to the health care FSA because there is no way to know in advance what your healthcare needs will be or how much they will cost!). I don't understand why Congress hasn't required that people get the money they deposited back! Thankfully, we were given the option to stop contributing at some point last year, but I still lost money. It's not going to break us, and we are luckier than many people since our jobs are safe, but it still irks me to no end.

Dude - Just make up expenses and submit them. I used to do them when we were contributing. Examples: Take last year's receipt (of a service provider you will likely be using again next year), change the date, scan and submit; get someone in your close family/friends to give you receipts for childcare. You can reimburse them for tax impact or tip them if they are younger teens.. Worse case scenario, expense gets denied.

Yeah, yeah.. I know ethics and all that BS. but this whole system is setup to milk people like us. The law could have simply allowed you to deduct this amount but no, they have to set up a convoluted scheme that required someone to adminster it and those people end up taking your money if you don't incur the expense or forget to submit expenses. Scam!

This is probably fraudulent but I’d absolutely agree with PP here regardless and submit a doctored receipt. This is ridiculous and it’s your money. So long as you file your taxes correctly (that is don’t claim the fake expenses there) your risk is very low.

[Anonymous]

Anonymous wrote:Don’t fudge it people. They do randomly call service providers.

No they don’t.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have always hated the system where you have to guess (months before the year even starts) what your needs will be for the whole year and then you are penalized by losing the money if you guess wrong. I think that is extraordinarily unfair (especially when it comes to the health care FSA because there is no way to know in advance what your healthcare needs will be or how much they will cost!). I don't understand why Congress hasn't required that people get the money they deposited back! Thankfully, we were given the option to stop contributing at some point last year, but I still lost money. It's not going to break us, and we are luckier than many people since our jobs are safe, but it still irks me to no end.

Dude - Just make up expenses and submit them. I used to do them when we were contributing. Examples: Take last year's receipt (of a service provider you will likely be using again next year), change the date, scan and submit; get someone in your close family/friends to give you receipts for childcare. You can reimburse them for tax impact or tip them if they are younger teens.. Worse case scenario, expense gets denied.

Yeah, yeah.. I know ethics and all that BS. but this whole system is setup to milk people like us. The law could have simply allowed you to deduct this amount but no, they have to set up a convoluted scheme that required someone to adminster it and those people end up taking your money if you don't incur the expense or forget to submit expenses. Scam!

+1.

+2

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have always hated the system where you have to guess (months before the year even starts) what your needs will be for the whole year and then you are penalized by losing the money if you guess wrong. I think that is extraordinarily unfair (especially when it comes to the health care FSA because there is no way to know in advance what your healthcare needs will be or how much they will cost!). I don't understand why Congress hasn't required that people get the money they deposited back! Thankfully, we were given the option to stop contributing at some point last year, but I still lost money. It's not going to break us, and we are luckier than many people since our jobs are safe, but it still irks me to no end.

Congress won't care because they have bigger concerns that UMC people who lost money in a tax advantaged account that most Americans don't have access to. The whole idea that the ability to use pre-tax money for certain services is based on an employer's whim is absurd, but the there are larger problems too address right now

This. In addition, were there no opportunities to spend the money? I'm not sure how old the OP's kids are, but there were camps, daycares, and preschools open by the summer.