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The account is, in theory, fully funded on day one...if you spend it all on January 1. You will still be paying $100 per month into the account so the FSA will eventually get their money.

If someone leaves their job before paying the entire amount, the FSA just closes the account but doesn't try to collect for the amount that was still owing from the monthly paychecks. It's a nice feature. They make up for it on the other end, from people you "lose" their money by not spending it all each year, so it probably works out for them.


Ah, so. It works the same for us, but we are, ahem, a bit lazy and disorganized and generally submitted our paperwork near the end of the year when the account is almost fully funded. We often leave money on the table because we never know how much to put in, especially as we get older, our medical expenses vary wildly (eg, DH just had the first root canal either one of us ever had). Personally I think it's stupid to manage tax-free medical spending in this way--why not simply allow all permissable medical expenses to be tax-deductible? I guess the govt prefers this layer of private-business bureaucracy...sounds like a scam to me, one founded on corporate bribery of legislators.

Anyway, I guess we'll get payback this time from all the money left in our MSA accounts over the years. I wish I had a crystal ball about other medical needs for 2013.
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