Using Flex Spending Account for WDW Vacation

[Disnee4Me]

So I participate in my company's Flex Spending account each year, where they deduct $$$ for my paycheck and reimburse me when I submit my medical bills for doctors, prescriptions, etc. I put in the entire amount allowed ($2500) and have not yet submitted for any claims for reimbursement. My goal is to start submitting in early October and when the $$$ hits my account, buy Disney Gift Cards to pay down my trip and also have some spending $$$ while I am in the parks. We are on the free dining plan, but I know my DH loves his appetizers and will want to have extra drinks during the course of the day. This should be a totally free trip between my Disney $$$s, Discover $$$s (which I will cash in for gift cards also at Target) and my flex spending reimbursement.

 

[seafoodbuffet]

Have you done this before? Most FSA's have pretty tight eligible spending lists that will only reimburse specific items. Unless you have a non-healthcare sort of account (for example, are you putting pre-tax dollars into your FSA?), it seems really unlikely that you'd be allowed to use it on park gift cards.

 

[MichWolv]

Have you done this before? Most FSA's have pretty tight eligible spending lists that will only reimburse specific items. Unless you have a non-healthcare sort of account (for example, are you putting pre-tax dollars into your FSA?), it seems really unlikely that you'd be allowed to use it on park gift cards.

If I follow correctly, she's saying she has actually incurred eligible medical/child care costs and paid for them out of pocket, and will submit for reimbursement now.

 

[rob0519]

We do the same thing with our FSA. Based on our family's medical expenses we usually spend $2,500 on eligible medical costs by June. I used to contribute up to $4,000 before the law changed. If you don't cash the checks, it adds up to a nice vacation / Christmas fund.

 

[CaptainAmerica]

This should be a totally free trip between my Disney $$$s, Discover $$$s (which I will cash in for gift cards also at Target) and my flex spending reimbursement.

Yikes. Someone needs a lesson in fungibility.

"I got rich off my Discover points," said no rich person ever.

 

[Disnee4Me]

Yikes. Someone needs a lesson in fungibility.

"I got rich off my Discover points," said no rich person ever.

Except in December 2013, my DH had brain aneurysm surgery that left us with $3300 in medical bills out of pocket, so I worked out payment plans with every doctor, hospital, lab, etc. and charged them monthly on Discover, follow by my oldest DS, at age 24 (December 2014) having complications from a tonsillectomy that left us with $3200 in medical bills ... almost the same as my DHs...go figure. We are paying that off now and will be done at the end of the year. Then with all the bonus points for promotions, like gas, online purchases, etc., some months I earn as much as $80 (equivalent to spending $8000) when I've only spent about $3000. So I do well by Discover.

 

[NormC]

Who is managing your FSAs? My company uses Benefit Strategies and they (and the IRS) will not allow us to use FSA money on purchases that are not allowed by the IRS. Disney Vacation does not qualify as a medical expense. Also it is your money so you are not getting anything free.

 

[CaptainAmerica]

Who is managing your FSAs? My company uses Benefit Strategies and they (and the IRS) will not allow us to use FSA money on purchases that are not allowed by the IRS. Disney Vacation does not qualify as a medical expense.

It sounds like she's already incurred the medical expenses but has not yet submitted for reimbursement. Once she does, she'll use her reimbursement money to pay for her Disney trip.

Also it is your money so you are not getting anything free.

Exactly.

 

[Disnee4Me]

It sounds like she's already incurred the medical expenses but has not yet submitted for reimbursement. Once she does, she'll use her reimbursement money to pay for her Disney trip.


Exactly.

 

[Disnee4Me]

Yes I have incurred almost the entire $2500, and while it's not free $$$, since it has been taken out of my paycheck all year, I consider it Found $$$$...almost like it was hidden in a drawer allyear long...LOL.

 

[PinnySmart]

Yes I have incurred almost the entire $2500, and while it's not free $$$, since it has been taken out of my paycheck all year, I consider it Found $$$$...almost like it was hidden in a drawer allyear long...LOL.

So there is really nothing free about it.

 

[NeedMoreMickey]

For us the HSA works better because it doesn't have a time limit, the FSA we had was use the money or lose it within a year. Using the HSA we pay for our prescriptions with our Disney Visa and about every 6 months I submit all my medical cost to the HSA for a refund payment to me. This way we get Disney dollars with the Visa and a lump sum of money that we use for vacation or Christmas shopping.

 

[GustyDeurts]

So there is really nothing free about it.

You don't pay taxes on the money you elect for your FSA. So that is the free part about it. Some people just above a lower tax bracket, elect for FSA which keeps them in the lower tax bracket, and therefore pay even less taxes.

 

[JoeCamel]

You don't pay taxes on the money you elect for your FSA. So that is the free part about it. Some people just above a lower tax bracket, elect for FSA which keeps them in the lower tax bracket, and therefore pay even less taxes.

Was that true 5 years ago when the post you are replying to was made?

 

[mkt]

"I got rich off my Discover points," said no rich person ever.

Nope, but thanks to expense reports, I have paid for this year's Christmas presents with my Citi Double Cash points at 0 cost to me.