Premium Bene's may qualify for means test?

[jmstay]

I am considering increaing my benefits at work to include a healthcare spending account. This is 2 fold, for one I want to be sure that we will be left with little to no money out of pocked for unexpected medical expenses is we end up in a 13. On the other hand, by doing this it may increase our expenses by $300-400per month which may push me into a 7 through the means test(which I want). Is anyone familiar with the legitimacy of doing this? is it likely to raise eyebrows? Particularly the healthcare spending account piece of it...this is ID'd as an allowable expendatire on the means test that I currently to do take advantage of but could enroll in since my spouses employment status has changed.

TIA

[FreshLikeADaisy]

Last I looked (which was a couple years ago) healthcare spending account balances that are not used by the end of the year are forfeited, so be sure you check that out before you sign up. If you currently have little to no out-of-pocket medical expenditures and suddenly sign up for a $400/mo contribution to this thing, well, yes, I think it might raise some eyebrows. Keep in mind that you are going to be providing at least 60 days worth of pay stubs to the trustee, so he/she will know exactly where your deductions are going and whether they recently changed. Not that that's an issue; it's only a problem when you have to explain it.

[ameliabedilia]

Is it an HSA or a FSA? They are very different. A Health Savings account would probably be okay since it means you have a high deductible insurance plan and you need some money saved for even minor medical issues. These funds do not get taken if they are not used, they roll over year after year. Flex account might give you problems unless you can show that you need to spend that much money to use it, as those funds do get taken at the end of the year.

[JollyGG]

As long as the medical expenses / need is there you should be fine. These accounts are a great tool for managing your medical bills and saving a bit of money since the money comes out pre-tax. Plus it is there when you need it. You esentially already budgeted for it.

[jmstay]

Its an FSA but we currently are spengin a couple of K per year for braces, etc on child #1 and wil be dong the same for child #2 next year. We are also incurring some unexpected medical bills end of this year and next that hsitorically we did not need to cover.

[FreshLikeADaisy]

If the need is already there and you're already spending that money, I don't see how the trustee could complain.