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It's that way because it's the law (IRS rules).

Yes, I get that but what I don't understand is why no one else sees the stupidity of it. Guess too high and someone keeps your money. I think the plan management company keeps it. Guess too low and get no tax advantage. So, really what are they accomplishing? It's really a dumb law. The flexible SAVINGS account seems to be much smarter. I think you can roll that forward year after year. Of course, it's too late for it in this case and my company doesn't offer it anyway.

The good thing is that 100% of your total annual contribution must be available for you to use on Jan 1.

Nope. Not in this case. The "plan year" ends on June 30.

The only major life circumstance I can think of is that I'm about to lose $1000. I mean, really, there should be a deduction on Schedule A for funds lost to an FSA. It *is* after all a cost to me because of the tax code. :)

Thanks for your thoughts, though.
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