How does the Health Care Flexible Spending Account work and is there a site that has all the rules?

Answer 1

Try the IRS website IRS.gov for all the rules. If your employer offers a flex account you elect to participate. Money is set aside in a predetermined amount you decide from each paycheck and put into this account. The money is taken out before any tax deductions are calculated for federal and state. You keep track of your health expenses and request reimbursement of them from this account through the employer. Before starting such an account you should have a fairly accurate idea of what you spend annually out of pocket on medical expenses such as doctor copayments, prescriptions, chiropractors, therapistist, etc... because any funds left in the account at the end of the year are forfeited, therefore you need to be careful about how much you choose to set aside from each paycheck. The IRS just recently extended the deadline that reimbursements can be made from end of the year to March 1st. After this date the funds are forfeited.

Each year you contribute new funds to the account and request new reimbursements.