MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

The 11th Tax Day of Christmas: Flexible Spending Accounts

30 Dec 2019 · 1 min

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This content was created by MARK KOHLER. This content was uploaded by MARK KOHLER. This is a YouTube video titled "The 11th Tax Day of Christmas: Flexible Spending Accounts" (posted Dec 30, 2019). It is a short tax/financial advice segment presented by MARK KOHLER explaining flexible spending accounts (FSAs): that they are typically part of corporate cafeteria plans, are a use-it-or-lose-it benefit reimbursed tax-free, are uncommon in small businesses, and that employees should submit receipts before December 31 to avoid losing funds. No other speakers are evident in the excerpt.

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On the 11th day of Christmas, your true love gave you a flexible spending account. An FSA who needs 11 Piper's piping. Oh my gosh, that would be so annoying. So you want to have a flexible spending account as that gift on the 11th tax day of Christmas. Now what a flexible spending account is, it's really a corporate strategy. It's not a small business strategy. Rarely do we ever see a FSA implemented with one of our clients that's a small business owner. Even with 10 or 20 employees, they're quite rare. They're really a big corporate strategy and it's part of a cafeteria plan. So if any of you out there have a flexible spending account at your day job or with your spouse's day job, they're going to give you a certain dollar amount and this is the use it or lose it plan. And they're going to say, hey, if you turn in these receipts, we'll reimburse you and it's tax free. It's not included in your paycheck. It's a great strategy. It's an important year end strategy, especially for those, again, that have kind of that day job or a flexible spending account offered through something other than their small business. But the reminder is you want to do this before December 31st, turn in those receipts, get the reimbursement, because again, it's a use or lose it. And if we don't talk about it, you might lose it.