Letter Re: Open Enrollment for Many U.S. Medical Savings Plans

Hi James,
First let me thank you for your wonderful blog, which I read every day. This is just a reminder that fall is typically Open Enrollment at many large and small companies for next year’s benefits elections. My company’s three week window to sign up for 2010 benefits opened yesterday. This is the time when a person can choose to participate in a [“before tax”] Flexible Spending Plan. While some people are justifiably nervous putting money away in a, “use it or lose it,” program, the I.R.S. made the decision a lot easier a few years ago when it allowed Flexible Spending Plan funds to be used for over the counter medications. Even if you are blessed with perfect health and never see a doctor all year, the Flexible Spending Plan is great way to put some money away to stock up on your “Band-Aids,” tax free!

My prayer for you and your family is that you have happy memories without pain in the shortest amount of time possible. – D.

JWR Replies: Thanks for that suggestion. One proviso for readers: Be sure to to mark your calendar for a date two weeks in advance of the spending deadline!