DH and I plan to start TTC in the new year but open enrollments for our medical FSA are right now. Last time we were due in April, so we went ahead and put a bunch in to pay for the cost of the birth. This time its iffy if we will have a baby in 2019 or not, so I don't plan to risk it. But then it occurred to me that a birth counts as a qualifying change. So could I increase it possibly at the very end of the year and then still use those funds to pay for the birth? I know it would have to all come out of my check at the very end since it wouldn't be spread out throughout the year. Has anyone done this or know more than I do about how it works?
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We have an hsa so not sure how it differs but I know we can add money whenever we want up to the yearly max. So if we wanted to put in nothing and then the full amount at the end of the year we could. Hsa's also roll over so not sure if you can look into a plan with an hsa instead
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@MamaBear87: I think they're pretty different. I know for our FSA we basically have to decide now what our contributions are like for Jan 1-Dec 31 of 2019 and we can only make mid-year changes with a qualifying event - which birth is. And we can only roll over $500 to the next year which is why its important not to over-contribute. We're also not eligible for HSA because of our health insurance plan.
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@JennyPenny: It sounds, based on your post and your reply above, like this plan could definitely work if needed. I would talk to HR though (if you have someone) about these specifics just to confirm it's an option for you though for peace of mind.
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@lindseykaye: I just feel weird about emailing HR about trying to get pregnant next year. I know they technically can't discriminate or share, but it feels really weird.
I also just found this on an article about FSAs:
May I submit for expenses incurred prior to my election change against my new election balance?
No, any services incurred prior to the effective date of the election change are not eligible for reimbursement under the new election balance even if the previous balance has been depleted.
So to me I think that means I should just put in what I would if I wasn't hoping to get pregnant. And that if I do have a baby next year I still won't be able to cover it with the account
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This was our exact situation too. We put in what I know we would use (a few hundred) plus the $500 that we can roll over, so we ended up with around $800. I would have put more in if we knew I'd get pregnant, but we just didn't know, and I didn't want to loose a ton of money.
It sucks, but it's just part of the deal with an FSA.
And I wouldn't bother asking your HR about it. Even if you can change it after the birth, you can't back charge expenses prior to the birth/the birth itself.
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Yes, we did this. And yes, it will take a bigger portion out of your remaining paychecks, but it is possible.
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@JennyPenny: you don’t have to tell HR the reason for your question. Just ask if you are permitted to update your FSA designation if you have a qualifying event. You could imply that it’s related to your husband’s job / insurance situation.
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@JennyPenny: if you can’t change it (I really don’t know but doesn’t sound like you can) remember at least if you get pregnant and give birth in the same year, you save a lot on deductibles and stuff. So if you pregnant right away, you save by having it all in one calendar year. If you are due after the new year, then you can up your FSA for the next year and use it for the birth. Either way it should help some.
I think for the child care flex spending you can change it with any qualifying life event but that makes sense since it would be going forward.
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I would do a larger amount next year because I know mine can include expenses for 2019 + Jan-March of 2020 so you actually have 15 months. I would check if yours is the same. Plus I always spend all of ours on glasses, contacts, sunscreen, copay, dentists etc
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