Last weekend’s Wall Street Journal Weekend had an article by Ron Lieber titled “The Easy Money People Ignore.” I have to admit that FSAs are a pain to use. I hate the “use-it-or-lose-it” rule. After all, it’s MY MONEY! The article does offer up some decent solutions to the FSA’s shortcomings. However, I think a couple of thingscould be done to make FSAs more flexible:
1. Allow account holders to make adjustments to their accounts during the year. The third-party provider has a record of what payments were made. If the account holder hasn’t spent the money they allotted at the beginning of the year, they should be able make changes to their account.
2. Allow for direct deposit. I hate getting checks in the mail. I much prefer direct deposit.
3. Make submissions web-based rather than paperwork intensive.
Those are my ideas. Do any of you have any other suggestions?