Flexible Spending preretirement
Should we opt out of flexible spending in order to have a higher gross income 4 years prior to retirement? I have been told definitely & no it’s not that big of a difference. It would be approximately $7000 difference a year including the pretax insurance.
Terry Says
I don’t understand why you want a higher income for four years before retirement — unless it’s to maximize Social Security credits. But assuming you make more than the taxable SS base income (which is $128,400 in 2018) it won’t have an impact. And if you want to see how much of an impact it will have on your SS check at retirement, there is a calculator at SocialSecurity.gov.
Do you actually USE your flex spending account? That’s the real question. And is it flex spending or an HSA, which you can roll over and use to pay future medical expenses on a pre-tax basis.
I’m not quite sure I understand your question here!
