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Financial Planning

10 Money Moves to Make Before 2012

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Use It or Lose It

By Dan Kadlec Dec. 07, 2011

One day, tax law and corporate policy will permit employees to rollover unspent money in a flexible spending account. But not this day. Once again, you must use all of the money in your account by Dec. 31, or forfeit the balance. This is a ridiculous rule that towards the end of each year leads to a run on storable pharmacy products as account holders binge buy things like new glasses, contact lenses, eyewear cleaning products and other qualified products. If you are struggling to exhaust your flexible spending balance, consider loading up on hand sanitizer, cold and flu medications, cough drops, prescription refills, first-aid items like bandages and tape, and common medicine cabinet goods like pain relievers, antacids, heartburn relievers and allergy pills. For an extensive list of qualified medical expenses, check out IRS Publication 502 Medical and Dental Expenses.

Next Set Up Tax-Advantaged Accounts

Full List

  • 10 Year-End Money Moves

    • Plan Your New Year’s Resolution Now
    • Use It or Lose It
    • Set Up Tax-Advantaged Accounts
    • Invest in the Future
    • Chip Away at Your Estate
    • Take Your Remaining Vacation Days
    • Give Wisely
    • Shift Income
    • Harvest Tax Losses
    • Think Green
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