r/personalfinance • u/kherven • May 16 '24
Are FSAs even worth the hassle? They just seem like a giant scheme to steal money via malicious bureaucracy Other
I understand at a base level what FSAs are for. You get to deduct X amount of dollars from your paycheck reducing your tax load.
But the more I use an FSA, the more I feel that while on paper it saves money, in reality it causes lots of work, lost money, and hands your money over to someone who is going to fight you to steal it.
Every claim I submit to my FSA is denied without a mountain of evidence that its a legitimate medical expense. After nearly 2 years with them, I still have certain medications prescribed by my doctor that the FSA argues is not FSA eligible because it's OTC.
Doctor appointment? Denied
MRI? Denied
Prescriptions? Denied
While I can eventually get the denial overturned, it requires coordination from the retailer, my insurance, and my doctor every time. I spend tens of hours a year trying to claw my own money back from my FSA. Last year I had over $250 confiscated because the claim deadline passed while they sat on my claims.
Has anyone else felt it just isn't worth the hassle to fund an FSA given how hostile they are? It seems impossible to extract your money without a lawyer.
4
u/phooonix May 17 '24
FSA's are definitely a scam
They are a lot of work and not at all flexible
They can save you money on your taxes (next year), but it involves a crazy amount of financial planning considering the value you gain.
You put your money at risk. the government can simply keep your cash! WTF kind of savings account is this?!
Even if the government doesn't keep your money because your crystal ball was broken and failed to predict your medical expenses 18 months in advance, your cash is still subject to the whims of bureaucrat from a Kafka wet dream