BreadWithSpam@[EMAIL PROTECTED]
wrote:
> "P.Schuman" <pschuman_no_spam_me@[EMAIL PROTECTED]
> writes:
>
> [re: FSA "use it or lose it" pre-tax medical savings]
>
>> is it better to deduct more (not taxed), even if you will not spend
>> it and will loose it at end of year, or deduct less, and have the
>> remaining come out of pocket (taxed) - but not enough for a Sched A
>> deduction.
>
> Run the numbers.
[...]
> That was all a very verbose way of saing that
> any money in the FSA which is above (1 - tax rate)
> is 'free' money that, yes, you'd hate to walk away
> from, but doesn't cost you anything if you do so.
Include in the tax rate the 7.65% savings of SS and Medicare tax also.
-Mark Bole
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