Quicken Paycheck Setup wizard & HSA
Why does Quicken Paycheck Setup wizard classifies pretax Flex Spending accounts (aka Health Savings Accounts) as assets? No matter how much I tried, I can't change it to Savings – which is what they are.
Answers
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As to the "why" question I have no better answer than "that's the way it was programmed."
In a way I think that setting the FSA Account as a generic Asset Account vs. a Savings Account does have some merit. The FSA is a "Use it or lose it" asset and the money in that Account is tax-free money that can only be used for eligible medical or dependent care expenses without triggering income tax consequences. But a Savings Account is not a use it or lose it situation and that money - which is after tax money - can be used for anything you want.
The two Accounts are very different in that regard and having that FSA money in that generic Asset Account makes the distinction clear and gives that Account a certain "visibility" that can easily be lost in a jumble of several genuine Savings Accounts.
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Thank you, Tom, for this explanation. I see the argument you're making but I can't agree with its logic.
In effect, it puts my HSA account in the same category as my home, cars, etc., as well as the related loans and mortgages. First of all, these are not "use it or lose it" assets. Secondly, these are all sizable assets, while my HSA is not and will never be. Additionally, I almost never use my assets to pay for anything (car trade-ins, etc. are rare exceptions), whereas the HSA is specifically designed for this purpose, to pay for stuff, and it gets lost in the list of unlike items.
It is a tax-free savings account intended for a specific purpose — health-related expenses, and it should be designated as such. And, by the way, the government (federal, state, and local) taxes all my assets relentlessly! 😉
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How about making the HSA asset as a "seperate account" for further isolation?
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