Reply #20: The way they currently work is.... [View All]

...you try to guess how much you'll spend in copays, non-covered items, etc, divide by the number of paychecks you get in a year (usually 24), and put that amount aside in your MSA. That money comes out of your paycheck before taxes. The catch is, you have until the end of the year to spend all of the money, or you lose whatever is left on Dec. 31st.

Needless to say, places like LensCrafters just LOVE this system, since many people have significant sums left over in December, and eyeglasses is one of the no-brainer items bought with the surplus funds. No-one at the company administering the benefits, or at the IRS is going to ask you for the old busted glasses, so there you go.