FSA accounts

Options
BKQ
BKQ Quicken Windows Subscription Member ✭✭
edited June 17 in Registers & Transactions (Windows)

Windows - Classic Premier 27.1.53.32

I reviewed the below thread and now I'm worried that I'm [Removed - Profanity]. I have my Flex accounts set up a little differently... In my flex account a total amount is deposited (loaned) to me at the beginning of each calendar year, and each of my paychecks has a pre-tax deduction throughout the year to pay down that amount.

Therefore, I set up the FSA accounts like an asset with a related liability, and each paycheck deduction is a transfer to pay down the liability.

The trouble is, the liability account doesn't give me the option for "tax schedule" like the asset account does.

I have years worth of paychecks that have these transfers to the FSA Liability account. Does anybody have advice for me on how I can fix this, as I'm trying to make my quicken records keeping as perfect as possible. I've never used the tax scheduler or planner, but lately I'm really trying to get everything straightened out.

https://community.quicken.com/discussion/7957298/when-and-how-should-flexcontrib-category-be-used

Comments

  • CaliQkn
    CaliQkn Quicken Windows Subscription Member ✭✭✭✭

    @BKQ not really sure how you can go back an fix what already has happened, or if you really need to. Maybe just moving forward with a new process might work just fine.

    FSAs are simply a spending accounts that you make deposits to from your paycheck on a periodic basis throughout the year towards an annual goal amount. Even though the annual goal amount is available for you to use as of January 1st, it is not considered a loan. Nor should it have any liability or asset account attached to it.

    If you use FSA funds at the beginning of the year that is more than the current balance at that time, you will have a negative balance that will be made up with subsequent deposits from your paycheck. Again, it's like a loan, but not a loan, if that makes sense.

  • BKQ
    BKQ Quicken Windows Subscription Member ✭✭

    Thank you, I understand. When my wife and I set this up several yrs ago, it seemed to me like setting it up like a liability and an asset (displaying as a savings or spending account) was the way to go. We never really thought about using Quicken's tax features before, so it never mattered that we didn't have the FSA set up the correct way, as it made sense to us how it was set up.

    I just wish there was a way to have Quicken show the full $ amount we have available Jan 1st, since, that kinda affects the banking balance and the net worth. I will attampt to fix the records as of the beginning of 2025 and depending how that goes, maybe I'll fix 2024, etc.

Categories