jump to navigation

Self-satire at the IRS? May 5, 2006

Posted by federalist in Open Questions.
trackback

Why have Health Savings Accounts and Flexible Spending Accounts been structured with such onerous and convoluted provisions? IRS Publication 969 almost seems like satire.

I.e., given that an employer can buy health services for employees with pretax dollars:

  1. Why does an HSA require that the taxpayer have no low-deductible health insurance?
  2. Why must a FSA be funded ahead of time? I.e., why does the taxpayer have to guess a year in advance what his covered expenses will be?
  3. Why are unspent FSA balances forfeited after a year (or now a year and 75 days)?
  4. Why are self-employed individuals excluded from the tax benefits of HSA’s and the even more attractive Health Reimbursement Arrangements?
Advertisements

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: