{"id":1477,"date":"2011-01-06T20:48:54","date_gmt":"2011-01-07T04:48:54","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=1477"},"modified":"2022-03-04T16:46:23","modified_gmt":"2022-03-05T00:46:23","slug":"how-being-absentminded-resulted-in-a-2750-year-end-windfall","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id1477-how-being-absentminded-resulted-in-a-2750-year-end-windfall.html","title":{"rendered":"How Being Absentminded Resulted In A $2750 Year-End Windfall"},"content":{"rendered":"<p>At least <em>I&#8217;m<\/em> calling it a windfall.  Let me explain.<\/p>\n<p>You see, if I leave a twenty dollar bill in a winter jacket only to rediscover it after it has been hanging in the closet for nine months, that&#8217;s a windfall.<\/p>\n<p>Now I can hear a lot of you out there already.  <em>That&#8217;s not a windfall, you schmuck, that&#8217;s just <a href=\"https:\/\/lenpenzo.com\/blog\/id3176-100-words-on-why-luck-is-so-overrated-2.html\">dumb luck<\/a>.<\/em><\/p>\n<p>Oh sure, you&#8217;ll say I didn&#8217;t gain any additional money that wasn&#8217;t officially mine to begin with anyway, but I disagree.<\/p>\n<p>In reality, what I <em>really<\/em> did was rediscover a little money I had unwittingly lost the previous winter.   Therefore, it&#8217;s a windfall.<\/p>\n<p>That&#8217;s my story anyway and I&#8217;m sticking to it.<\/p>\n<p><strong>Why I Love Flexible Spending Accounts<\/strong><\/p>\n<p>Now let me tell you about my latest windfall.<\/p>\n<p>Every year, I take advantage of the health flexible spending account (FSA) offered by my employer because, frankly, I&#8217;d be crazy not to.  After all, FSA contributions are <a href=\"https:\/\/lenpenzo.com\/blog\/id823-flexible-spending-accounts-provide-free-money-why-pass-it-up.html\">essentially free money<\/a>.   Well, at least part of them are.  That&#8217;s because FSA contributions &#8212; which are used to pay for out-of-pocket medical expenses that are not covered by your health insurance plan &#8212; are tax free.  That&#8217;s right tax free!<\/p>\n<p>So by taking advantage of the tax-free money I contribute to my FSA I am, in essence, allowing the government to subsidize a portion of my annual unreimbursed medical expenses.<\/p>\n<p>Needless to say, every year you can bet that I use <em>my<\/em> FSA to pay for all my medical copayments and deductibles on everything from prescription medicine to glasses and contact lenses.<\/p>\n<p>In 2010, I elected to have a little over $105 deducted from every paycheck and placed into my FSA.   For those of you keeping score at home, that&#8217;s $2750 in tax-free money.<\/p>\n<p><strong>My Summer FSA Ritual<\/strong><\/p>\n<p>I always have enough medical claims to use my entire FSA allowance by mid-summer.  Always.<\/p>\n<p>In fact, I have this ritual where every August I usually tally up the family&#8217;s qualifying medical expenses and then use the FSA reimbursement check to help soften the financial blow of our annual summer vacation.  Usually.<\/p>\n<p>I say &#8220;usually&#8221; because, on the eve before my employer&#8217;s annual benefits enrollment period expired last month, I was finalizing my 2011 electives when, to my utter amazement, I realized that I had yet to request any medical reimbursements in 2010 from my flexible spending account!   Yep!<\/p>\n<p>Just like that, 2750 simoleons that I thought I had already spent in August were suddenly available &#8212; and just in time to defray all those holiday expenses too!<\/p>\n<p>As the old saying goes, I was happier than a tornado in a trailer park.  Heck, even the Honeybee did her little beehive dance after I told her about our large windfall.<\/p>\n<p>My only disappointment was that I badly underestimated our qualifying medical expenses for the year; we ended up having over $3500 in all.<\/p>\n<p>True, everyone has to be careful to not overestimate their annual qualifying medical expenses because FSA money deducted from your paycheck is &#8220;use it or lose it,&#8221; but you may be surprised to learn that it often doesn&#8217;t take much for qualifying medical expenses to quickly add up, especially for a family of four.<\/p>\n<p>For example, just take a look at a gross summary of my qualifying expenses this past year:<\/p>\n<p><a href=\"https:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2011\/01\/FSAExample.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1478\" title=\"FSAExample\" src=\"https:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2011\/01\/FSAExample.png\" alt=\"\" width=\"411\" height=\"379\" \/><\/a><\/p>\n<p>Still, even though I underestimated my expenses just a bit, I&#8217;m certainly not going to quibble.  After all, getting an unexpected $2750 is nothing to scoff at.  No matter what you decide to call it.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At least I&#8217;m calling it a windfall. Let me explain. You see, if I leave a twenty dollar bill in a winter jacket only to rediscover it after it has been hanging in the closet for nine months, that&#8217;s a windfall. Now I can hear a lot of you out there already. That&#8217;s not a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","pmpro_default_level":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[459,460,462,466,470],"tags":[],"class_list":{"0":"post-1477","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-family","7":"category-insurance","8":"category-jobs-work","9":"category-saving","10":"category-tips","11":"pmpro-has-access","12":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.8 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How Being Absentminded Resulted In A $2750 Year-End Windfall<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lenpenzo.com\/blog\/id1477-how-being-absentminded-resulted-in-a-2750-year-end-windfall.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Being Absentminded Resulted In A $2750 Year-End Windfall\" \/>\n<meta property=\"og:description\" content=\"At least I&#8217;m calling it a windfall. Let me explain. You see, if I leave a twenty dollar bill in a winter jacket only to rediscover it after it has been hanging in the closet for nine months, that&#8217;s a windfall. Now I can hear a lot of you out there already. 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