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
Finance allah shmoop what is medicaid medic You hear the
soldier screaming all the time in war movies i need
aid Well that kind of is what it is Financial
aid but medicaid is basically health insurance for the poor
that is administered by the states but whose purse strings
are generally controlled federally i'ii centrally In washington medicaid is
the financial health bomb for over sixty five million americans
who simply can't afford their own health insurance Taxpayers give
their dough to the government which then re apportions it
to the masses to pay for everything from treatment of
boo boos and out cheese Teo you know serious things
Why do we have it Why do we have medicaid
Well if you're a middle class quote average josie unquote
in this country and on any given sunday night you're
sitting in your heated home while it's snowing outside and
you have your tv on and you belt from a
nice meal How you going to feel seeing a slow
moving stream of homeless joe's walking by outside coughing desperate
for health care How does that feel Well maybe the
costs were so high they used to be you sitting
In there nice warm house but their kid got sick
or they got sick or something else happened and had
to sell their home their car everything covered the doctor
bills So yeah as a country we just don't do
india Yeah we don't treat people like that We don't
have our politicians and successful people live like this while
the huge percentage of our population you know lives like
this Medicaid is one of a bunch of social welfare
entitlements we offer as a country and we posit that
these combined are in fact one of the many things
that does make us great So yeah medicaid is specifically
angled toward covering the medical cost of the poor it's
not done perfectly it's not done efficiently it could be
done a whole lot better but at least it's done
We also have medicare which covers the medical costs of
the old the g's er's the ones who no longer
work for the most part except for driving for uber
there are over sixty five and many of them are
sick or at least they need pills in one form
or another Medicare comes in a few flavors all named
part this and part that like there's part ay which
covers hospital insurance ever been to an e r they
cost like a grand or three a night Yes more
than the honeymoon suite at pebble beach and way less
fun And if things are really bad it covers hospice
Yeah for the the end with capitol the end then
there's part b which covers the more basic less emergency
today today outpatient care issues from pill subscriptions toe therapy
then there's part c which is basically the arrangement between
your employer and government health care You know hmo's p
pose and so on that is essentially your employer pays
medicare to just handle your coverage soup to nuts and
you know unless you're allergic to nuts don't don't don't
do that and party is all about drugs D for
drugs see thats what it stands for that's how you
remember it that's medicare and medicaid these social entitlements while
helping plenty of people cost the country of fortune And
yes there is corruption in the system and lazy people
who are just they're collecting a paycheck And yes computers
and robots will help us manage all this stuff more
efficiently in the future But the suffering they stave off 00:03:07.92 --> [endTime] is worth it