FSA and Microwaving metal

Traci makes a good point in her comment on my other blog. Don't microwave metal - including foil. Sparks, fire, bad. There are exceptions you can get away with, like a little metal rim around a small container with a large opening, but it's an iffy proposition.

Now, on to Flexible Spending Accounts. Some employers offer the option of having a Flexible Spending Account. You tell them at the beginning of the year how much you want to put into it during the year (there are limits) and they take the money out of your pay before they figure your taxes and give you your check. Therefore, you aren't paying taxes on that amount, which is the big incentive to having the account. It's pretax money. Usually there are two kinds of accounts - medical and child care and the money can be used for medical, dental, vision, or child care (needed because of employment not Friday date night) expenses. The downside is that if you don't end up using the whole amount you set aside by the end of the year, you lose it. So you have to estimate pretty carefully and it's better to underestimate than to over estimate.

Sometimes you need to send in the receipts to be reimbursed for the money you've spent. But recently some accounts have started giving the account holder a debit card which they can use when they incur the expense. So if you go to the doctor you pay your copay with the debit card and it comes directly out of your account. Or buy glasses, or get a prescription, or whatever else is covered by the account. It makes it much easier to not forget about or miss a covered expense and therefore much easier to use up all the money you've allocated to the account.
This may not save huge amounts of money in taxes but every little bit helps!