Dependent Care Flexible Spending Account (FSA)

Categories: Insurance, Retirement

Working families who exist in a two-income household and need to pay for nannies or daycare for young children, or for visiting nurse services if there's a medically infirm spouse or elder relative, have IRS tax deduction approved options. That is, if they commit to spending whatever on that care in advance, they get to deduct it. Or said another way, by using pre-tax money that an employer sets aside into an employee’s registered Flexible Spending Account (FSA), the money becomes tax exempt and can be used to pay for such services without dipping into post-tax earnings.

In recognition of the millions who rely on FSAs and work for small businesses that cannot afford 401(k) and comprehensive health insurance, legislation is in process going into 2019 which may allow greater flexibility for OTC drug purchases and preventive care, like sports and fitness expenses. Sorry to disappoint, but it doesn't include coverage of recreational drugs or skateboarding gear.

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Finance: What is medicare versus medicai...3 Views

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Finance allah shmoop what is medicaid medic You hear the

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soldier screaming all the time in war movies i need

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aid Well that kind of is what it is Financial

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aid but medicaid is basically health insurance for the poor

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that is administered by the states but whose purse strings

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are generally controlled federally i'ii centrally In washington medicaid is

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the financial health bomb for over sixty five million americans

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who simply can't afford their own health insurance Taxpayers give

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their dough to the government which then re apportions it

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to the masses to pay for everything from treatment of

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boo boos and out cheese Teo you know serious things

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Why do we have it Why do we have medicaid

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Well if you're a middle class quote average josie unquote

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in this country and on any given sunday night you're

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sitting in your heated home while it's snowing outside and

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you have your tv on and you belt from a

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nice meal How you going to feel seeing a slow

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moving stream of homeless joe's walking by outside coughing desperate

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for health care How does that feel Well maybe the

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costs were so high they used to be you sitting

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In there nice warm house but their kid got sick

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or they got sick or something else happened and had

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to sell their home their car everything covered the doctor

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bills So yeah as a country we just don't do

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india Yeah we don't treat people like that We don't

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have our politicians and successful people live like this while

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the huge percentage of our population you know lives like

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this Medicaid is one of a bunch of social welfare

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entitlements we offer as a country and we posit that

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these combined are in fact one of the many things

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that does make us great So yeah medicaid is specifically

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angled toward covering the medical cost of the poor it's

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not done perfectly it's not done efficiently it could be

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done a whole lot better but at least it's done

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We also have medicare which covers the medical costs of

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the old the g's er's the ones who no longer

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work for the most part except for driving for uber

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there are over sixty five and many of them are

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sick or at least they need pills in one form

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or another Medicare comes in a few flavors all named

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part this and part that like there's part ay which

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covers hospital insurance ever been to an e r they

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cost like a grand or three a night Yes more

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than the honeymoon suite at pebble beach and way less

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fun And if things are really bad it covers hospice

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Yeah for the the end with capitol the end then

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there's part b which covers the more basic less emergency

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today today outpatient care issues from pill subscriptions toe therapy

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then there's part c which is basically the arrangement between

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your employer and government health care You know hmo's p

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pose and so on that is essentially your employer pays

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medicare to just handle your coverage soup to nuts and

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you know unless you're allergic to nuts don't don't don't

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do that and party is all about drugs D for

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drugs see thats what it stands for that's how you

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remember it that's medicare and medicaid these social entitlements while

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helping plenty of people cost the country of fortune And

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yes there is corruption in the system and lazy people

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who are just they're collecting a paycheck And yes computers

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and robots will help us manage all this stuff more

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efficiently in the future But the suffering they stave off 00:03:07.92 --> [endTime] is worth it

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