FSA pays for surgery!

[moobius]

http://en.wikipedia.org/wiki/Flexible_spending_account#Pre-funding

Pre-funding
One very important advantage of medical FSAs is that they are "pre-funded" by the employer: If you set aside an amount per year in a medical FSA (as in the earlier example), the entire amount is available for your use immediately--either at the start of the plan year (commonly January 1) or after the first contribution to the FSA is received by the FSA vendor, depending on the plan--even though you only contribute to the FSA in small increments throughout the year (for example, 1/26 of the annual amount if you are paid biweekly).

You do not continue to contribute to the plan upon termination of your employment. Thus, you could use the entire amount on day one of the plan year, terminate your employment on day two of the plan year, and contributions would have been none or negligible (e.g., perhaps 1/26 in the case of biweekly contributions). The "free" money is not taxable. The reason for this is that the IRS views these plans for tax purposes as insurance policies. [3]

[silverback]

If you read the IRS code, FSA does not pay for cosmetic surgery.  Were you able to find something specific that says it will cover gynecomastia surgery?

[moobius]

shit.... did some more searching and it seems that gynecomastia is one that is not covered regardless of whether or not it's the recommended treatment of your primary physician


lasik is covered though...

[matthew1]

 do it anyway, IRS  will never find out,   really,  treating this condition  is as important as any

[rashdudes]

Yep, searched in company policies that i work for. Turns out Gyne and some cosmetic
surgeries ain't covered 

[moobius]

do it anyway, IRS  will never find out,   really,  treating this condition  is as important as any

damn straight! but, unless you can get the doc to write it up as something other than "gynecomastia" surgery it's not gonna get covered.

you could still bone 'em on lasik  (or any other covered procedure)

[milesed1]

The IRS will know if they do even a "mini-audit". That turns into a complete audit for this and previous years. Dont try this to save a small amount of money- you'll end up paying for it in penalties, etc. many times over.

[moobius]

The IRS will know if they do even a "mini-audit". That turns into a complete audit for this and previous years. Dont try this to save a small amount of money- you'll end up paying for it in penalties, etc. many times over.

if used for legitimately covered procedures there's no recourse from the IRS... it's a risk taken on by the company. if you don't use the full FSA by year end, they keep it. The flip side is you can have a procedure done on Jan 1 and quit on Jan 2nd and they bite the bullet.

[milesed1]

Look up the specifics on FSA's. They specifically state NO cosmetic procedures.

[matthew1]

 gyne is not   just cosmetic, its a mental  health issue too.  Have  some  balls, break the rules and do the  damn surgery with those funds. The  doc  can be sreative  the way he writes it  up. IRS will never  find out

[milesed1]

One friend of mine had a full IRS audit because they had a baby and appendectomy within the same year and were able to claim the deduction. They had full documentation and were in no trouble.

A second friend used her FSA for laser hair removal and was audited. She had to repay the difference with penalties and interest. Better ask a tax professional.