Open Enrollment Options & BK

[danaf]

We are having open enrollment now at work.

There is really cheap accidental insurance - that would be only $10 a month (for 500k) - sort of a no brainer.

Then there is the 'flex spending account'

Would these expenses be exempt from a 7? The insurance I think yes and at $10, not an issue.

But putting 4 or 5k into a flex spending account...would that protected?

What about starting to contribute to a 401k? I've only been at this place for a yr so now is really the first time I've been eligible.

[SinkingFast]

401K contributions are kinda Court dependent. Some Courts allow one %'age while other Courts allow other %'ages.

We were in the same boat as you. Hubby'd just become eligible to participate when we were Consulting around. We asked our attny about signing up for 401K.

Our attny asked how much/what %'age we were thinking of contributing. Hubby's employer matches the first 3% so we wanted to do that. Our attny said that would be OK. And it flew. Trustee never said a word.

Others have posted here that they've been allowed to contribute up to 5% with no questions. Depending on your Court, retirement savings should be doable.

We also contribute to Med Reimbursement Savings. Nothing like the amount you're talking about. We put back right at $1K for copays and meds. That flew too. Trustee never said a word.

But if you can justify the need for a larger $$$ amount, it might be fine. If you have special needs or a chronic medical condition that's quite costly. Definitely a question for attnys in your area.

The accidental insurance should be OK. We have Life that we pay on our own. Then Hubby has Short Term and Long Term Disability deducted from his paychecks. All 3 flew.

As you Consult around, definitely ask attnys in your area what's acceptable and do your enrollment at work accordingly.

[JollyGG]

I love my flex spending accounts. I use the medical expense account and the daycare expense account. I did have to explain how our daycare bill was listed on our schedules because we listed the flex amount then an amount that came from our net pay since the flex account has a 5k a year limit. But once I explained it it was no problem.

My guess is that flexible spending account in a way reduce your cost for certain things (since you are paying with pre-tax money). It makes your taxable income lower therefore decreasing your tax burden. It makes your dollar streatch further since you weren't taxed on it. I would think it would would be viewed favorable by a trustee. Additionally I cannot access those funds exept for allowable expenses.

Our trustee never even asked how much we had in flexable spending and I don't remember listing it anywhere. She obviously knew we used it.

[$$only4ever]

Listed my flex spending for medical on my schedule when I filed. The trustee never said a word, but I was not putting $4-$5k into it. Check with your attorney.

[DebtHeadache]

I am putting up to 5K in a flex plan....cronicle medical conditions that require monthly medications. And numerous doctor appointments and lab tests. This amout can be backed up as I am already surpassing about 7K in medical expenses so far this year.

We will be retaining a lawyer in late December. I would like to hold off filing until after Valentines day....that is profit sharing day and I'd like to put my hard earned money in my pocket and not the trustees.

[danaf]

5k is a little high. I'll probably do 1 or 2k.

I am starting craniosacral therapy for my tmj and was hoping I could use the flex spend for it but then looked at the exemptions and sure enough, massage therapy is not allowed. Nor are vitamin supplements. Of course -

But 1 or 2k I'll definately use up in co-pays and dental.

I also started the 401k thing but only 3% so I get the company contribution.

thanks for the input.

[JollyGG]

I am putting up to 5K in a flex plan....cronicle medical conditions that require monthly medications. And numerous doctor appointments and lab tests. This amout can be backed up as I am already surpassing about 7K in medical expenses so far this year.

We will be retaining a lawyer in late December. I would like to hold off filing until after Valentines day.

If you have medical expenses that high I think you would be crazy not to take advantage of a flexible spending account bankruptcy or no bankruptcy, trustee or no trustee. Besides if you file in Febuary you will only have around 700 in there for the year, probably less since I assume you will have medical bill in January and Febuary.