Check Your Health Flexible Spending Account (FSA) Before December 31
If you have a Flexible Spending Account (FSA) through your employer do not delay!
You must clean it out by December 31 if your employer hasn’t implemented the 2 1/2-month grace period or the $500 carryover rule. Otherwise, you will forfeit any money left in your account.
Also, consider electing to contribute to a health FSA for 2020. You can put in up to $2,750 (estimated) to your employer’s health FSA to cover out-of-pocket medicals. Amounts contributed to an FSA escape federal income tax as well as payroll taxes.
Interested in additional year-end tax planning tips? Please click here to view our white paper "Year-End Tax Planning for Individuals".
With offices in Williston and Rutland Vermont, Davis & Hodgdon Associates CPAs has been assisting Vermont’s residents and entrepreneurs for more than 30 years. Our proactive approach make us more than an accounting firm - we counsel our clients on a wide range of financial and management issues, resulting in better decision making and more confidence in their success.