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Reply to "Newbie question: talk to me about flexible spending accounts and orthodontics"
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[quote=Anonymous][quote=Anonymous]We just did this. We prepaid the entire amount (got a small discount that way) and were able to get $2500 back right away. FSA required proof of payment as well as a copy of the contract and treatment plan. I was very nervous about the process, but it went smoothly. [/quote] That is one way to do it. However, might not be the best from financial standpoint. FSA covers up to max during the year of payment if all treatment paid in full in the beginning, or monthly fees over the time of treatment. Ortho doctors offers both way too, with slight discount for lump-sum payment. However, with lump-sum payment you can only pay $2.5K pretax, whereas with monthly payments - you can get up to 5K pretax (2*2.5K) So, do the math carefully when planning ortho treatment and FSA contribution.[/quote]
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