WEBVTT NOTE This file was generated by Descript 00:00:04.997 --> 00:00:08.011 Welcome to the fiscal firehouse, a podcast dedicated to promoting 00:00:08.011 --> 00:00:09.921 financial literacy to firefighters. 00:00:10.091 --> 00:00:13.791 I'm your cohost, John Beatty, executive board member of local 1309, 00:00:14.061 --> 00:00:18.481 a lieutenant, and also a certified financial planner with me, I have the 00:00:18.481 --> 00:00:22.211 other cohost of the fiscal firehouse, Louie Borrella, executive board member 00:00:22.211 --> 00:00:26.761 of local 1309 ambulance driver, and want to be financial expert together. 00:00:26.761 --> 00:00:29.491 John and I hope to bring clarity to the world of personal finance, 00:00:29.501 --> 00:00:31.281 specifically relating to firefighters. 00:00:31.766 --> 00:00:33.236 Firefighting is a difficult job. 00:00:33.636 --> 00:00:35.756 Making sound financial decisions shouldn't be. 00:00:36.256 --> 00:00:39.216 Jon: In today's episode of the Fiscal Firehouse, John and Louie 00:00:39.216 --> 00:00:43.676 will tackle two exciting topics, flexible spending accounts and health 00:00:43.676 --> 00:00:46.706 savings accounts, FSAs and HSAs. 00:00:47.296 --> 00:00:50.076 John and Louie will also discuss how best to utilize these two 00:00:50.076 --> 00:00:52.056 important employer benefits. 00:00:52.406 --> 00:00:56.766 Without further interruption, let's go to local 1309 studios and the 00:00:56.766 --> 00:00:58.306 recording of the Fiscal Firehouse. 00:01:00.686 --> 00:01:03.852 Welcome back to another episode of the Fiscal Firehouse. 00:01:04.212 --> 00:01:06.022 I'm your co host, John Beatty. 00:01:06.082 --> 00:01:11.582 With me, I have the man, the myth, the legend, LB, Louie Barella. 00:01:11.582 --> 00:01:12.552 How's it going today, Louie? 00:01:12.732 --> 00:01:14.432 Louie: ambulance driver, Louie Barella. 00:01:14.532 --> 00:01:17.662 Jon: Yeah, that's right, the ambulance driver, Louie Barella. 00:01:18.002 --> 00:01:20.362 Hey, we have got a A big pod for you today. 00:01:20.362 --> 00:01:21.912 We got a lot of topics to get to. 00:01:21.932 --> 00:01:26.142 It is the Superbowl, for our HR departments right now, open enrollment 00:01:26.142 --> 00:01:29.892 season We're going to talk about a lot of the things that involve open enrollment, 00:01:29.943 --> 00:01:33.153 Louie: And one disclaimer we want to give during this time is that, , this 00:01:33.153 --> 00:01:35.173 is not a rehashing of the HR video. 00:01:35.213 --> 00:01:38.123 This is not a substitute for watching the. 00:01:38.453 --> 00:01:39.563 vector solutions video. 00:01:39.893 --> 00:01:42.733 You still got to watch that We're just trying to give you some 00:01:42.763 --> 00:01:46.633 important info regarding the financial aspects of open enrollment 00:01:46.633 --> 00:01:47.883 that you might want to consider. 00:01:48.063 --> 00:01:48.273 Jon: Yeah. 00:01:48.273 --> 00:01:50.988 And what you guys might notice from the, from the intro is. 00:01:51.688 --> 00:01:55.768 We're changing up a little bit of the tone and the flavor of the podcast. 00:01:56.048 --> 00:01:58.468 so there's kind of two different reasons that that happens. 00:01:58.468 --> 00:02:01.368 So first we got direct feedback from the members was one. 00:02:01.678 --> 00:02:04.358 but then also we've got feedback from other members outside 00:02:04.358 --> 00:02:06.838 of a local 1309 that really. 00:02:07.428 --> 00:02:09.268 information for their members as well. 00:02:09.288 --> 00:02:12.888 So you guys know that we have a joint recruit academy. 00:02:12.918 --> 00:02:17.038 So not only amongst West Metro employees, but also our Vata and 00:02:17.038 --> 00:02:20.488 castle rock, and sometimes other neighboring agencies come participate. 00:02:20.798 --> 00:02:24.528 So when Louie and I got this podcast spun up, we started spitballing 00:02:24.528 --> 00:02:27.028 around the kitchen table and they're like, This is really cool. 00:02:27.028 --> 00:02:29.928 Is this something that would be available for us and our members? 00:02:30.228 --> 00:02:33.788 so we kind of had a conversation amongst the executive board, originally when he 00:02:33.798 --> 00:02:37.188 had our first episode, we said, Hey, this is going to be curated specifically for 00:02:37.188 --> 00:02:42.798 local 1309 members, but really in the spirit of stewardship and unionism and 00:02:42.798 --> 00:02:46.358 really trying to get this information out to quite frankly, all professional 00:02:46.368 --> 00:02:50.158 firefighters, If there's people that want to hear this messaging outside 00:02:50.158 --> 00:02:53.798 of the membership, then I think that's something that we want to entertain. 00:02:53.798 --> 00:02:57.488 So, you know, this is still being funded through local 1309 members. 00:02:57.648 --> 00:03:00.498 so there will be some parts of the podcast that are curated still 00:03:00.498 --> 00:03:03.507 specifically for our members, but really, I'm going to go on record here 00:03:03.507 --> 00:03:06.977 and say that 90 to 95 percent of the conversations that we're going to have 00:03:07.217 --> 00:03:10.197 are going to be really applicable to any professional firefighter, really 00:03:10.197 --> 00:03:11.677 any kind of personal finance stuff. 00:03:11.677 --> 00:03:12.697 So thoughts on that, 00:03:12.952 --> 00:03:13.922 Louie: No, I totally agree. 00:03:13.922 --> 00:03:16.892 I think that there's a hunger for this kind of information, 00:03:16.952 --> 00:03:20.172 throughout the Colorado professional firefighters association. 00:03:20.562 --> 00:03:24.292 and you know, the professional fighters within Colorado at the very least. 00:03:24.302 --> 00:03:27.732 So, yeah, we're, we think that this could be very beneficial to those people. 00:03:27.732 --> 00:03:28.512 So we're going to kind of. 00:03:28.852 --> 00:03:31.612 Let them know about it, see if they want to subscribe and listen. 00:03:31.952 --> 00:03:34.372 And on that related note, you know, one thing, John, I don't know if 00:03:34.372 --> 00:03:37.582 you've been asked this question, but I've had people come up to me 00:03:37.582 --> 00:03:39.022 and say, Hey, I like the podcast. 00:03:39.042 --> 00:03:42.482 I didn't get an alert once episode one dropped. 00:03:42.762 --> 00:03:44.862 I got episode zero, listen to that. 00:03:45.082 --> 00:03:46.542 you know, where's, where's my email. 00:03:46.582 --> 00:03:49.742 So just so you guys know a little housekeeping, we're not going to be. 00:03:50.287 --> 00:03:53.087 sending out emails or text reminders to let you know when it drops, 00:03:53.087 --> 00:03:54.117 that would just be annoying. 00:03:54.117 --> 00:03:56.467 And, for all the people that don't want to listen to that, we 00:03:56.467 --> 00:03:57.707 don't want to spam them with that. 00:03:57.707 --> 00:04:00.747 So if you want to subscribe, go to your podcast player choice, whether 00:04:00.747 --> 00:04:03.577 that's Spotify or, Apple music. 00:04:03.577 --> 00:04:07.007 Apple podcast, I guess, and subscribe to the podcast. 00:04:07.007 --> 00:04:10.497 So don't want to sound like a, an overplayed YouTubers and was like, Hey, 00:04:10.737 --> 00:04:12.607 subscribe and smash that like button. 00:04:12.857 --> 00:04:18.047 But, if you subscribe or, I think some people calling it add to collections 00:04:18.047 --> 00:04:21.848 or whatever, depending on the podcast player, that will, Allow every podcast 00:04:21.848 --> 00:04:25.698 that we come out with to be automatically downloaded, add it to your playlist. 00:04:26.018 --> 00:04:29.148 And then that way you'll be notified when we drop a new episode. 00:04:29.348 --> 00:04:32.548 Jon: Yeah, and if you, don't have the capabilities of doing that, find a 00:04:32.548 --> 00:04:37.698 Gen Zer, find someone that was born, after 1990 and they will get you dialed 00:04:37.698 --> 00:04:40.268 in on how to subscribe to a podcast. 00:04:40.378 --> 00:04:43.738 Louie: one of those new guys to, to subscribe for you. 00:04:43.838 --> 00:04:45.198 Jon: That's right, that's right. 00:04:45.198 --> 00:04:48.408 So, on the dock today, we got a couple of different topics 00:04:48.408 --> 00:04:49.468 that we're going to talk about. 00:04:49.558 --> 00:04:54.278 we're going to start by talking about the FSAs, the flexible spending accounts. 00:04:54.568 --> 00:04:56.988 but specifically when we're talking about this, and this is more 00:04:56.988 --> 00:04:59.568 related to local 1309 members. 00:04:59.608 --> 00:05:03.138 This has nothing to do with the retirement health savings plan. 00:05:03.478 --> 00:05:03.788 All right. 00:05:03.788 --> 00:05:05.818 Sometimes there's some, confusion about. 00:05:05.888 --> 00:05:08.098 different levels of retirement health savings. 00:05:08.328 --> 00:05:12.228 so this is completely standalone from what the retirement health savings plan is. 00:05:12.488 --> 00:05:16.628 So once again, if you're a member outside of local 1309 in your department has 00:05:16.628 --> 00:05:20.868 set up some type of retirement health savings plan, this is, It's not apply 00:05:20.868 --> 00:05:22.858 at all to the flexible spending account. 00:05:22.858 --> 00:05:24.768 So sometimes there's some misinformation about that. 00:05:25.008 --> 00:05:27.888 in a future episode, we are going to talk more about, what it's like to have 00:05:27.888 --> 00:05:31.278 healthcare once you retire and how to save for that and using retirement health 00:05:31.278 --> 00:05:32.768 savings and all these other things. 00:05:32.968 --> 00:05:35.718 but really these are two standalone topics and they really shouldn't 00:05:35.718 --> 00:05:37.038 be intertwined or intermixed. 00:05:37.088 --> 00:05:40.928 Louie: Yep, we have enough information here between FSAs and 00:05:41.068 --> 00:05:42.938 we'll get to HSAs later as well. 00:05:43.188 --> 00:05:47.358 But we'll talk about retirement health savings accounts, which is a great plan. 00:05:47.398 --> 00:05:49.648 We'll talk about that at a later episode when we're talking about 00:05:49.708 --> 00:05:51.758 retirement and retirement health care. 00:05:52.183 --> 00:05:52.483 Jon: Perfect. 00:05:52.483 --> 00:05:55.313 Yeah, that's a huge, it's a huge topic and something that's always front in 00:05:55.313 --> 00:05:57.623 mind of people thinking about retiring. 00:05:57.903 --> 00:06:01.813 So let's start out with just what exactly is a flexible spending account. 00:06:02.063 --> 00:06:05.563 So really it's something that is provided through your employer. 00:06:05.813 --> 00:06:09.453 So if you, have a spouse or someone else that is listening, that is 00:06:09.453 --> 00:06:12.503 either self employed or like a sole proprietor, this is something 00:06:12.503 --> 00:06:13.973 that they don't have access to. 00:06:14.143 --> 00:06:16.563 It has to specifically come from your employer. 00:06:16.573 --> 00:06:18.623 You can't go and seek this out on your own. 00:06:18.833 --> 00:06:19.943 And honestly, this is something that's. 00:06:20.023 --> 00:06:23.373 become very commonplace, not only just in the fire department, but 00:06:23.373 --> 00:06:26.523 in corporate American, everything else is just an additional benefit 00:06:26.533 --> 00:06:31.033 that employers really recognize that their employees need and want, and 00:06:31.033 --> 00:06:32.793 it's just become really commonplace. 00:06:33.343 --> 00:06:36.663 So I don't think you're, I think if you're listening outside of local 13 00:06:36.723 --> 00:06:39.333 oh nine, and I think this is going to be something that I'm, betting 00:06:39.333 --> 00:06:41.313 your department probably offers you. 00:06:41.583 --> 00:06:42.763 So what exactly is it? 00:06:42.803 --> 00:06:45.473 there's really two different avenues in which you can use 00:06:45.503 --> 00:06:46.913 a flexible spending account. 00:06:47.193 --> 00:06:49.363 One is for medical care, right? 00:06:49.363 --> 00:06:50.803 qualified medical expenses. 00:06:51.073 --> 00:06:53.613 And the other thing is for dependent care. 00:06:53.633 --> 00:06:57.203 And those are two separate categories that would have different contribution limits. 00:06:57.473 --> 00:07:01.393 And the really key thing is, and why it's really nice from a financial planning 00:07:01.393 --> 00:07:03.548 perspective is You get to save on tax. 00:07:03.778 --> 00:07:06.398 It's always a pre tax contribution. 00:07:06.668 --> 00:07:09.438 So you're not going to pay any federal income tax. 00:07:09.438 --> 00:07:10.868 You're not gonna pay any state tax on it. 00:07:11.108 --> 00:07:14.378 And if you work for an employer, if you work for a fire department 00:07:14.378 --> 00:07:17.338 that actually still participates in social security, those FICA 00:07:17.338 --> 00:07:20.878 taxes, which are pretty, expensive, you're going to save on that money. 00:07:20.878 --> 00:07:22.628 So it's a really nice tax savings. 00:07:22.728 --> 00:07:25.778 Louie: So John, would you say that the main reason to contribute to 00:07:25.778 --> 00:07:28.078 an FSA is for the tax savings? 00:07:28.323 --> 00:07:28.873 Jon: 100%. 00:07:28.903 --> 00:07:31.653 If it's one of those things that, you know, you're going to have qualified 00:07:31.653 --> 00:07:33.833 medical expenses within the calendar year. 00:07:33.833 --> 00:07:36.143 And once again, we'll talk about what that means here in a second. 00:07:36.433 --> 00:07:37.263 it's a no brainer. 00:07:37.273 --> 00:07:41.423 It's going to be a 20 to 30 percent savings just based on what tax bracket, 00:07:41.433 --> 00:07:42.703 maybe even a little bit more than that. 00:07:42.703 --> 00:07:45.130 So, I feel like there has to be a catch. 00:07:45.130 --> 00:07:46.213 What's the catch though? 00:07:46.253 --> 00:07:47.733 There's always catches, right? 00:07:47.813 --> 00:07:53.593 So the biggest thing, these should not be thought of a savings account, like a 00:07:53.603 --> 00:07:56.903 health savings account, which we'll talk about here in a little bit, in a minute. 00:07:57.093 --> 00:07:58.743 so they're under the IRS. 00:07:58.743 --> 00:08:01.813 They're basically what's called a use it or lose it plan. 00:08:02.073 --> 00:08:05.983 So what that means is the money that you have saved up has to be 00:08:06.003 --> 00:08:08.213 incurred within that calendar year. 00:08:08.333 --> 00:08:11.343 Basically from January 1st to December 31st. 00:08:11.363 --> 00:08:12.503 You have to use that money. 00:08:12.503 --> 00:08:17.033 You can't roll it over, you know infinitely so there's so that's why it's 00:08:17.033 --> 00:08:19.753 one of those things that you just have to be cautious You don't want to put all 00:08:19.753 --> 00:08:23.763 this money away And then at the end of the year buying two thousand dollars worth of 00:08:23.773 --> 00:08:27.943 band aids and tums and pepsi And I don't know what you guys eat at the firehouse 00:08:27.943 --> 00:08:32.263 But I mean you could probably go a long ways with buying some of those necessities 00:08:32.343 --> 00:08:35.453 Louie: Metamucil and the Tums themselves, man, that could, that 00:08:35.453 --> 00:08:37.003 could take up an FSA right there. 00:08:37.283 --> 00:08:39.583 Jon: take up a whole FSA, especially if you're cooking. 00:08:39.913 --> 00:08:43.343 but yeah, so that's really the big caveat with that is you want to try to pre plan 00:08:43.343 --> 00:08:46.993 as much, knowing what your healthcare needs are and what those healthcare 00:08:47.053 --> 00:08:50.363 costs are going to be, and try to plan that to the best of your ability. 00:08:50.363 --> 00:08:52.903 And there's always going to be accidents that happen and it's 00:08:52.903 --> 00:08:54.832 always maybe nice to have a little bit of money in reserve for that. 00:08:54.973 --> 00:08:58.053 to pay for those, but, you don't want to go hog wild and go crazy and have 00:08:58.063 --> 00:09:01.053 all this money saved up and then at the end of the year, you didn't really 00:09:01.053 --> 00:09:04.033 have any medical expenses, which is great from a health perspective. 00:09:04.033 --> 00:09:04.633 You didn't get hurt. 00:09:04.633 --> 00:09:05.433 You didn't get injured. 00:09:05.633 --> 00:09:09.193 but you also don't want to have this overlooming amount of money that then 00:09:09.193 --> 00:09:12.703 you're trying at the end of the year, trying to, you know, use, use, costs and 00:09:12.703 --> 00:09:14.923 expenses that really are unnecessary. 00:09:15.103 --> 00:09:18.143 Louie: So I think it'd be probably fair to say that if you have children, 00:09:18.403 --> 00:09:21.613 that live with you, we know that those kids love to go to the doctor, 00:09:21.613 --> 00:09:23.103 man, they get hurt, they get injured. 00:09:23.413 --> 00:09:27.433 they might have to go to an urgent care or they might have to go to a doctor's office 00:09:27.433 --> 00:09:30.373 visit for colds or the flu or whatever. 00:09:30.733 --> 00:09:35.838 And so maybe for you, That would make sense to max out an FSA, 00:09:35.848 --> 00:09:38.228 which we'll talk about those limits later on in the episode. 00:09:38.818 --> 00:09:41.768 But if you have adult children or you don't have children or you're not 00:09:41.768 --> 00:09:45.778 married and you're a relatively healthy individual maybe we don't want to put 00:09:45.858 --> 00:09:51.028 the max allowable Amount into an FSA because like you said we might get to 00:09:51.028 --> 00:09:54.638 the end of the year And then be doing the FSA scramble where you have to 00:09:54.708 --> 00:09:58.498 start Looking at all the eligible items that you might be able to buy so that 00:09:58.508 --> 00:10:02.688 you don't lose those funds I would say that's probably the the biggest catch. 00:10:02.850 --> 00:10:04.739 Jon: Yes, if it sounds too good to be true, it is. 00:10:05.119 --> 00:10:07.069 But this is just one of those kind of buyer bewares. 00:10:07.069 --> 00:10:10.659 Just be cautious about that because you don't want to run into that. 00:10:11.229 --> 00:10:15.409 So one of the things I want to backpedal just a little bit on is there's basically 00:10:15.409 --> 00:10:18.059 two different types of health care FSAs. 00:10:18.389 --> 00:10:22.029 All right, there's what's called a it's typically called a general care or a 00:10:22.029 --> 00:10:27.349 general purpose health care fsa So that will cover things for medical vision and 00:10:27.349 --> 00:10:33.309 dental and then some employers will also offer what is called a limited purpose 00:10:33.589 --> 00:10:39.484 Health care fsa and that will cover only dental and And vision and we'll talk 00:10:39.494 --> 00:10:42.744 about the discrepancies between two of those when we talk about health savings 00:10:42.744 --> 00:10:46.764 account because it's really important It seems like a very small nuanced detail But 00:10:46.764 --> 00:10:50.524 when it comes to health savings account, it's a very important detail to be able 00:10:50.524 --> 00:10:53.744 to know what the difference are and what makes things eligible and not eligible. 00:10:53.744 --> 00:10:54.694 So we'll talk about that 00:10:54.699 --> 00:10:57.629 Louie: and to and to keep it simple What do we offer here at west 00:10:57.884 --> 00:11:01.604 Jon: So west metro you pretty much have the general purpose is what people are 00:11:01.604 --> 00:11:04.904 going to contribute to so that is going to cover It's a good little segue. 00:11:04.924 --> 00:11:09.229 So what That actually constitutes qualified medical expenses. 00:11:09.229 --> 00:11:13.869 in this case, it is things such as medications, vision, dental services, 00:11:14.019 --> 00:11:15.709 medical treatments and procedures. 00:11:15.749 --> 00:11:18.389 Basically those that are non con, cosmetic. 00:11:18.609 --> 00:11:22.499 it'll cover co pays and deductibles, but it does not cover premiums. 00:11:22.509 --> 00:11:24.429 So this is also sometimes a misconception. 00:11:24.429 --> 00:11:25.399 It's like, oh, hey, cool. 00:11:25.399 --> 00:11:26.959 I've got this FSA. 00:11:26.979 --> 00:11:29.699 Can I use that to cover my healthcare premiums? 00:11:29.959 --> 00:11:33.119 And it's not, that is one of those things that is not covered, when 00:11:33.119 --> 00:11:35.359 you're talking about a healthcare FSA. 00:11:35.359 --> 00:11:38.019 So, health insurance premiums are not covered. 00:11:38.169 --> 00:11:40.459 there are certain things like, marriage counseling. 00:11:40.649 --> 00:11:44.169 I know a lot of our folks use, personal training or exercise equipment like 00:11:44.169 --> 00:11:45.939 that stuff is not an eligible expense. 00:11:46.139 --> 00:11:49.169 And then once again, any type of typically cosmetic surgery. 00:11:49.359 --> 00:11:52.674 full disclosure, there's always I don't want to say loopholes, but 00:11:52.674 --> 00:11:54.064 there's always special provisions. 00:11:54.274 --> 00:11:57.264 So you can't just blankedly say just cosmetic surgery generally, 00:11:57.434 --> 00:11:59.654 because they're always, almost always our exceptions to the 00:11:59.799 --> 00:12:00.149 Louie: Sure. 00:12:00.199 --> 00:12:00.489 Sure. 00:12:00.519 --> 00:12:04.689 But my Botox, I mean, I'm almost 40 now, so, you know, my Botox 00:12:04.689 --> 00:12:05.489 is probably not going to be 00:12:05.764 --> 00:12:07.334 Jon: Botox, teeth whitening. 00:12:07.344 --> 00:12:09.104 You got some pearly whites there, LB. 00:12:09.344 --> 00:12:11.014 those things ain't going to be covered. 00:12:11.074 --> 00:12:11.434 Yep. 00:12:11.434 --> 00:12:14.044 So just be buyer beware on that. 00:12:14.274 --> 00:12:16.754 so we kind of talked about, how you can use this. 00:12:16.944 --> 00:12:20.114 once again, it's a use it or lose it philosophy, right? 00:12:20.114 --> 00:12:23.264 So you have to use it within the calendar year, but once again. 00:12:23.429 --> 00:12:28.129 There's always exception to that rule and this one is going to be very specific 00:12:28.159 --> 00:12:33.129 to your employer's plan All right, so I can't I can't emphasize that enough. 00:12:33.299 --> 00:12:37.739 So this is important to your employer's plan So specifically here at west metro 00:12:38.029 --> 00:12:40.239 we have what is it called a grace period 00:12:40.514 --> 00:12:44.844 So you not only have the full calendar year, so January 1st to December 00:12:44.894 --> 00:12:50.424 31st, but our employer actually opens up a grace period up to March 15th. 00:12:50.444 --> 00:12:52.994 That basically allows you to incur any costs. 00:12:53.124 --> 00:12:55.484 So going to the doctor, the dentist, all that stuff. 00:12:55.534 --> 00:12:55.734 stuff. 00:12:55.734 --> 00:12:58.834 So you almost have a little bit over 14 and a half months 00:12:58.834 --> 00:13:00.264 to actually use that money up. 00:13:00.574 --> 00:13:04.834 And then you have until March 31st to basically get your paperwork in for 00:13:04.834 --> 00:13:06.634 reimbursement for any of those costs. 00:13:06.844 --> 00:13:09.474 So once again, though, that is specific to West Metro. 00:13:09.514 --> 00:13:11.714 check with your department, with your H. 00:13:11.714 --> 00:13:11.814 R. 00:13:11.814 --> 00:13:15.514 Department, to see exactly how your plan is set up because there are other plans 00:13:15.514 --> 00:13:18.474 that allow you basically to roll over a certain amount of money every year. 00:13:18.829 --> 00:13:20.629 but West Metro members don't have that. 00:13:20.629 --> 00:13:21.889 We do the grace period instead. 00:13:21.889 --> 00:13:25.209 So once again, be very, specific with whatever department 00:13:25.229 --> 00:13:26.099 you're operating under. 00:13:26.209 --> 00:13:29.039 Louie: use your funds, use your FSA funds. 00:13:29.569 --> 00:13:30.799 Jon: Use your FSA funds. 00:13:30.799 --> 00:13:34.249 We can't, it's once again, if you go beyond that March 15th or for 00:13:34.249 --> 00:13:37.709 some of the other, members that are listening to this, that have a December 00:13:37.749 --> 00:13:40.079 31st deadline, it, it goes away. 00:13:40.159 --> 00:13:41.619 Like you don't get that money back. 00:13:41.619 --> 00:13:44.489 You can't have an IOU and say, Oh, just give me some credit and 00:13:44.689 --> 00:13:45.839 we'll roll it to the next one. 00:13:45.839 --> 00:13:47.319 It does not apply that way. 00:13:47.559 --> 00:13:50.979 Louie: And on a related note, here's one of the really cool features of 00:13:51.039 --> 00:13:54.119 NFSA, benefit if you will, and that is. 00:13:54.934 --> 00:13:58.644 Once you decide the amount that you're going to contribute to your 00:13:58.944 --> 00:14:03.494 healthcare FSA, that entire amount that you're going to contribute for 00:14:03.494 --> 00:14:06.414 the whole year is available on day one. 00:14:06.914 --> 00:14:12.734 So, John, an example of that would be, let's say I decide to put 1, 000 over 00:14:12.734 --> 00:14:15.534 the course of the year into an FSA. 00:14:15.944 --> 00:14:19.124 we get paid twice monthly and you would have access to that 00:14:19.214 --> 00:14:23.594 entire thousand dollars up front to be able to use for healthcare. 00:14:23.764 --> 00:14:24.734 So that's kind of cool. 00:14:25.074 --> 00:14:29.264 It'll still take out just 41 and 67 cents from your. 00:14:29.429 --> 00:14:32.459 Paycheck, every paycheck, but you would be able to use that 00:14:32.509 --> 00:14:34.749 thousand dollars on January 00:14:35.134 --> 00:14:36.304 Jon: Right up front, which is great. 00:14:36.324 --> 00:14:39.344 part of this is just, you know, giving a little bit more education if at all 00:14:39.344 --> 00:14:43.144 possible, we never want to try to put stuff on credit, especially credit 00:14:43.154 --> 00:14:44.744 that we don't pay off every month. 00:14:44.779 --> 00:14:45.779 Louie: preach preach 00:14:45.844 --> 00:14:49.584 Jon: Well, yeah, we get back to what episode two was all about and achieving 00:14:49.584 --> 00:14:51.424 financial or episode one, sorry. 00:14:51.654 --> 00:14:55.114 And talking about, financial independence and really the pillars to that and. 00:14:55.199 --> 00:14:58.119 getting out and staying out of debt is definitely one of the main pillars. 00:14:58.129 --> 00:15:01.299 So if we can use the benefits that our employers provide for us and use 00:15:01.299 --> 00:15:04.969 them wisely, this will definitely put us in a better, financial position 00:15:04.969 --> 00:15:06.579 to achieve those goals long term. 00:15:06.644 --> 00:15:06.964 Louie: Yep. 00:15:07.154 --> 00:15:07.334 Yep. 00:15:07.709 --> 00:15:11.979 Jon: So how much can you actually put into your healthcare FSA? 00:15:11.999 --> 00:15:14.999 So this is one that is, the IRS has actually given us a 00:15:14.999 --> 00:15:16.199 little bit of grace with this. 00:15:16.539 --> 00:15:19.219 They have, made this somewhat Inflation protected. 00:15:19.459 --> 00:15:23.749 so that means typically every year they raise the contributions Limits up a little 00:15:23.749 --> 00:15:28.949 bit to keep up with the consumer price index the cpi So this was from last year. 00:15:28.989 --> 00:15:30.699 This was from a 2024. 00:15:30.709 --> 00:15:35.159 So obviously we're talking about 2025 those numbers will change typically the 00:15:35.159 --> 00:15:39.269 irs comes out with that notification in november So just as a point of reference, 00:15:39.269 --> 00:15:43.894 we're recording this the first week in october 2024 So within the next You 00:15:43.894 --> 00:15:47.544 know month or so they'll actually have more guidance as far as what the actual 00:15:47.564 --> 00:15:52.924 contribution limit is but from last year it was 3200 is what you could put away 00:15:53.194 --> 00:15:57.674 So this is something that's a little bit specific and that is per employee. 00:15:57.984 --> 00:16:00.824 All right, so you there's not a difference between a family 00:16:00.824 --> 00:16:03.004 plan and a individual plan plan. 00:16:03.234 --> 00:16:05.674 When you're talking about a healthcare, FSA. 00:16:05.884 --> 00:16:08.844 It is looking at the employee individualistically, whether 00:16:08.844 --> 00:16:10.034 you have a family or not. 00:16:10.314 --> 00:16:13.844 So case In point is, if you work for a fire department, 00:16:14.124 --> 00:16:15.484 you could put away 3, 200. 00:16:15.484 --> 00:16:19.474 dollars and then if your spouse or partner worked at a different job or 00:16:19.474 --> 00:16:22.159 a corporation a different agency even 00:16:22.204 --> 00:16:22.754 Louie: or even at 00:16:22.769 --> 00:16:26.459 Jon: Or even at west metro, they could then elect 3200 as long as 00:16:26.459 --> 00:16:30.059 their employer had that option available So sometimes there's some 00:16:30.059 --> 00:16:31.809 point of confusion about like, okay. 00:16:31.809 --> 00:16:35.999 I have a family Can I add more money to this or because i'm single do I get a 00:16:35.999 --> 00:16:40.499 reduction in this and no it's per employee So definitely a key point with that 00:16:40.499 --> 00:16:40.659 Louie: All 00:16:40.929 --> 00:16:44.349 Jon: So one of these things that we once again talked about is how much 00:16:44.379 --> 00:16:47.929 money should we be putting away, you know, and once again that is going to 00:16:47.929 --> 00:16:50.739 be a very individualistic Decision. 00:16:51.019 --> 00:16:52.829 And it's really just going to be based on where you're at. 00:16:52.829 --> 00:16:55.609 If you, I mean, this, to me, this is the knowns. 00:16:55.619 --> 00:16:59.469 So if you have chronic health problems or just chronic medications that 00:16:59.469 --> 00:17:02.199 you're on, you go to the chiropractor a certain amount of times a and you 00:17:02.199 --> 00:17:05.089 can kind of start to understand what that looks like every year and figure 00:17:05.089 --> 00:17:06.919 out what those out of pocket costs are. 00:17:07.219 --> 00:17:09.799 Like that's really where I would recommend someone starting at. 00:17:10.049 --> 00:17:12.539 starting at what you know, your known costs are going to be, 00:17:12.699 --> 00:17:14.039 and then working backwards. 00:17:14.309 --> 00:17:17.129 And if you end up having a couple hundred dollars at the end of the year 00:17:17.129 --> 00:17:19.459 leftover, I think that's probably okay. 00:17:19.459 --> 00:17:22.989 And then you can get some of those other necessities, whether it's a, you 00:17:22.989 --> 00:17:25.989 know, suntan lotion or, or Tums, or 00:17:26.299 --> 00:17:27.109 Louie: lotion is is 00:17:27.109 --> 00:17:28.679 Jon: I believe sunscreen now. 00:17:28.854 --> 00:17:33.764 You guys can fact check me on this, but I feel like on our last massive 00:17:33.794 --> 00:17:37.524 FSA order in which we had too much money left over Katie and I, I believe 00:17:37.524 --> 00:17:39.884 we've got like 17 tubs of sunscreen. 00:17:39.904 --> 00:17:41.294 So I will make a plug. 00:17:41.294 --> 00:17:44.794 And once again, Louie and I don't have any sponsors for this podcast. 00:17:45.374 --> 00:17:48.404 I know where you're going, but there is a store called the FSA store. 00:17:48.714 --> 00:17:51.294 com and they, you can basically search. 00:17:51.409 --> 00:17:55.949 Their products based on eligibility and it'll tell you exactly what is eligible 00:17:55.989 --> 00:17:56.579 Louie: pretty cool. 00:17:56.759 --> 00:17:59.419 Jon: irs regulation So I think that's where we actually went to 00:17:59.419 --> 00:18:03.299 it So that's the only reason like I feel pretty confident that suntan 00:18:03.466 --> 00:18:04.334 Louie: like, 00:18:04.559 --> 00:18:05.589 Jon: Is one of those qualified 00:18:06.070 --> 00:18:12.146 Louie: pretty confident that, suntan lotion is one 00:18:12.418 --> 00:18:12.720 Jon: course. 00:18:12.720 --> 00:18:13.624 Oh my gosh. 00:18:13.882 --> 00:18:16.486 Louie: most qualified expenses. 00:18:16.486 --> 00:18:18.222 Oh, of 00:18:18.351 --> 00:18:20.291 Jon: it got the nice zinc oxide on there? 00:18:20.291 --> 00:18:20.431 So 00:18:20.531 --> 00:18:20.801 Louie: I think. 00:18:21.281 --> 00:18:22.211 Oh, all pasty white. 00:18:22.211 --> 00:18:22.571 Yeah. 00:18:22.571 --> 00:18:23.501 I look great in that. 00:18:23.591 --> 00:18:25.421 But anyway, nice to know that that's covered. 00:18:25.421 --> 00:18:27.791 Maybe that's an option to get a couple tubs of that. 00:18:28.091 --> 00:18:29.231 Jon: Yep, a hundred percent. 00:18:29.241 --> 00:18:31.831 So that's kind of healthcare FSAs. 00:18:31.881 --> 00:18:34.941 generally speaking, general, guidance, just how you should 00:18:34.941 --> 00:18:36.351 think about going about that. 00:18:36.361 --> 00:18:39.721 I definitely think it's probably still underutilized just talking to our, 00:18:39.721 --> 00:18:44.050 members about it and, and what it's used for and when it's appropriate to use. 00:18:44.051 --> 00:18:47.186 so the one thing once again, So there's two different types of 00:18:47.186 --> 00:18:51.766 healthcare FSAs, general purpose, healthcare FSAs, and limited purpose. 00:18:52.136 --> 00:18:55.796 General care purpose really includes the medical portion of the plan. 00:18:55.796 --> 00:18:58.076 And that's what most of our members will probably use. 00:18:58.076 --> 00:19:00.346 So just know what the difference is in that. 00:19:00.646 --> 00:19:04.566 so now we're going to go over to the next layer, the next bucket, if you 00:19:04.566 --> 00:19:09.846 will, with the flexible spending accounts and that's the dependent care, flexible 00:19:10.051 --> 00:19:11.281 Louie: This one speaks to my heart. 00:19:11.411 --> 00:19:11.921 I like this 00:19:11.946 --> 00:19:15.536 Jon: This one does speak to your heart and it's also going to get you 00:19:15.556 --> 00:19:19.736 a little bit amped up when we talk about The distribution of this but 00:19:19.736 --> 00:19:23.016 nonetheless you want to chat a little bit about what the dependent care 00:19:23.076 --> 00:19:24.756 flexible spending accounts are louis 00:19:24.761 --> 00:19:25.081 Louie: Sure. 00:19:25.081 --> 00:19:25.341 Yeah. 00:19:25.711 --> 00:19:30.611 Dependent care FSA allows you to, basically. 00:19:31.061 --> 00:19:34.601 On a pre tax basis contribute to this account that can 00:19:34.601 --> 00:19:37.001 be used for dependent care. 00:19:37.101 --> 00:19:40.221 So if you have children and they're in preschool or they're in daycare, 00:19:40.691 --> 00:19:46.371 you can basically get a tax break on all and not all the money, but on 00:19:46.401 --> 00:19:51.371 a certain amount of money for those expenses, through your dependent care. 00:19:51.996 --> 00:19:52.536 FSA. 00:19:52.996 --> 00:19:57.746 There's a few differences in how the account works versus a health care FSA, 00:19:58.216 --> 00:20:04.256 but at the end of the day, it allows you to get a tax break on dependent care. 00:20:04.626 --> 00:20:05.216 Jon: Correct. 00:20:05.266 --> 00:20:09.046 And just for some, simplicity and putting a few numbers with it. 00:20:09.366 --> 00:20:14.296 So basically what the IRS qualifies as a qualifying child, it's 00:20:14.306 --> 00:20:16.306 someone that's under the age of 13. 00:20:16.576 --> 00:20:20.356 So if you've got a kid that's 12 and under, basically it will, Any type of 00:20:20.356 --> 00:20:24.486 care that you provide from them when you think about preschools, daycares, 00:20:24.706 --> 00:20:26.316 certain summer camps are eligible. 00:20:26.326 --> 00:20:30.046 All of those things after school care, before school care, all those 00:20:30.046 --> 00:20:32.666 things would be, qualifying expenses. 00:20:32.966 --> 00:20:36.526 It doesn't happen a lot, but also just keeping a broader perspective, 00:20:36.726 --> 00:20:40.136 you may have a spouse that also would fall under this category if they 00:20:40.136 --> 00:20:42.856 had some form of a disability and they couldn't care for themselves. 00:20:42.856 --> 00:20:44.816 I think that's that's often overlooked. 00:20:45.216 --> 00:20:49.041 And really I've run into this more talking with some of our older members 00:20:49.291 --> 00:20:53.341 that are now, in the later stages of taking care of their parents this is also 00:20:53.341 --> 00:20:57.131 something that is a potential that you could use, to help fund some of those 00:20:57.131 --> 00:20:59.221 costs if you had a dependent parent. 00:20:59.351 --> 00:20:59.711 parent. 00:20:59.751 --> 00:21:02.711 Now, there's a lot of stipulations and we're not getting into the weeds on that, 00:21:03.041 --> 00:21:07.161 but just be mindful if you are in that situation where you are caring for your 00:21:07.331 --> 00:21:10.021 parent, they're living at home, there's other things that you're providing for 00:21:10.021 --> 00:21:14.401 them, and per their IRS guidelines, they make a qualifying dependent. 00:21:14.661 --> 00:21:17.611 This is also something that you could potentially, use for money 00:21:17.611 --> 00:21:20.351 for that, and I think that's often overlooked and under discussed. 00:21:20.591 --> 00:21:21.941 So just be mindful of that. 00:21:21.941 --> 00:21:25.781 we kind of already hit a little bit as far as what are eligible expenses. 00:21:26.011 --> 00:21:28.591 once again, we're not going to go through the litany of all the things, 00:21:28.591 --> 00:21:30.871 but we already kind of hit on some of them before and after school 00:21:30.871 --> 00:21:35.731 care, nanny services, day camps, anything that you consider childcare, 00:21:35.731 --> 00:21:37.421 preschool, all those other things. 00:21:37.731 --> 00:21:39.351 What is not eligible? 00:21:39.581 --> 00:21:43.631 is, tuition expenses for education, some forms of summer 00:21:43.631 --> 00:21:45.741 school and overnight camps. 00:21:45.761 --> 00:21:47.981 So once again, if you're trying to use this for any of 00:21:47.981 --> 00:21:49.871 those ones, just buyer beware. 00:21:50.051 --> 00:21:51.241 you do not want to go down that road. 00:21:51.261 --> 00:21:52.281 They will deny that. 00:21:52.581 --> 00:21:53.841 Louie: school tuition doesn't count. 00:21:54.051 --> 00:21:56.671 Jon: Private school tuition does not count. 00:21:56.871 --> 00:22:01.111 you want to talk a little bit, about the funding mechanism and how the dependent 00:22:01.111 --> 00:22:05.631 care FSAs are a little bit different than the, healthcare FSAs, as far as 00:22:05.641 --> 00:22:07.721 when you are eligible for reimbursement. 00:22:07.761 --> 00:22:08.061 Louie: Yeah. 00:22:08.061 --> 00:22:11.061 So this is one of the, you can call it a catch if you want, or I would 00:22:11.061 --> 00:22:12.971 just call it a, just a difference. 00:22:13.321 --> 00:22:16.541 we talked about with healthcare FSAs, the full amount that you are 00:22:16.541 --> 00:22:19.621 going to contribute throughout the year is available on day one, while 00:22:19.621 --> 00:22:25.051 with the dependent care FSA doesn't work that way, it's not prefunded. 00:22:25.491 --> 00:22:30.231 And so basically you can only get reimbursed for the amount 00:22:30.231 --> 00:22:31.721 that you have in that account. 00:22:32.401 --> 00:22:33.971 as you contribute throughout the year. 00:22:34.061 --> 00:22:38.681 So if you are contributing, let's just say 50 a paycheck, that's, you 00:22:38.681 --> 00:22:43.261 know, a hundred dollars a month in that first month, you can only get a 00:22:43.261 --> 00:22:45.631 hundred dollars worth of reimbursements. 00:22:45.961 --> 00:22:47.931 So it's not all prefunded. 00:22:48.021 --> 00:22:49.661 You got to kind of plan it out a little bit. 00:22:50.021 --> 00:22:54.100 but that's just one of the limitations of the dependent care FSA. 00:22:54.410 --> 00:22:57.120 Jon: it definitely is a limitation and it's one of those I'll be honest for 00:22:57.120 --> 00:23:00.580 just ease of use What I do personally is I just wait till the end of the year 00:23:00.870 --> 00:23:06.040 I just have all that it's 206 a month I think is or a paycheck is what what I 00:23:06.050 --> 00:23:09.820 have taken out and then at the very end at december 31st Then I take it out take 00:23:09.820 --> 00:23:13.790 all those receipts, and then I submit it as a whole rather than just go kind 00:23:13.790 --> 00:23:15.760 of week to week or, or month to month. 00:23:15.910 --> 00:23:18.410 For me, it's just a way easier to track it that way. 00:23:18.640 --> 00:23:21.260 and that way I'm not trying to submit a bunch of receipts 00:23:21.290 --> 00:23:22.520 to get reimbursed for that. 00:23:22.530 --> 00:23:22.780 So 00:23:22.930 --> 00:23:23.900 Louie: that makes sense. 00:23:23.910 --> 00:23:24.740 Jon: a limiting factor with 00:23:24.971 --> 00:23:29.210 Louie: And just on a related note, you talked about submitting receipts. 00:23:29.660 --> 00:23:31.590 That is something that you have to do. 00:23:31.620 --> 00:23:36.500 The one important part of this is that to get reimbursed for dependent care 00:23:36.560 --> 00:23:44.600 FSA eligible expense, the person or the preschool or whatever it is that you are 00:23:44.740 --> 00:23:52.570 seeking reimbursement from has to be a tax paying, official, dependent care provider. 00:23:52.850 --> 00:23:54.480 So they had to provide you with a receipt. 00:23:54.910 --> 00:23:56.520 They had to be paying taxes on that. 00:23:56.840 --> 00:24:00.680 the, you know, 16 year old babysitter that you hire. 00:24:00.680 --> 00:24:05.040 So your wife and you can go out to have some wine and cheese at night. 00:24:05.360 --> 00:24:06.540 it would not be eligible. 00:24:06.820 --> 00:24:11.810 Unless that person is, you know, legitimately over the table, so to speak, 00:24:11.880 --> 00:24:17.130 paying taxes on it and providing you with a receipt and record of transaction. 00:24:17.350 --> 00:24:21.230 Jon: Yes, and that's a excellent segue, for our next topic. 00:24:21.230 --> 00:24:24.840 And this is something that is also, I don't know, well known, amongst not 00:24:24.840 --> 00:24:28.970 only our members, but I think as a, as a whole is, you know, really the purpose 00:24:28.970 --> 00:24:31.210 behind this was to allow people to. 00:24:31.225 --> 00:24:36.195 To work and then be reimbursed for work related expenses resulting in childcare. 00:24:36.545 --> 00:24:39.885 So what I mean by that is you actually have to show earned income 00:24:39.895 --> 00:24:42.765 from not only you, but if you're married, your spouse as well. 00:24:42.785 --> 00:24:45.645 And this is very common here is we have a lot of, stay at 00:24:45.645 --> 00:24:47.175 homes, moms and dads, right. 00:24:47.415 --> 00:24:49.985 And they, I mean, don't get me wrong, staying at home with your 00:24:49.985 --> 00:24:51.325 kid, that is a full time job. 00:24:51.345 --> 00:24:53.525 And I wish the IRS would recognize like. 00:24:54.095 --> 00:24:54.705 You're not kidding. 00:24:54.705 --> 00:24:58.535 That is a full time job and my hat's off to anyone that's a tremendous 00:24:58.535 --> 00:25:01.695 responsibility and really a tremendous gift to be able to give your kids. 00:25:01.955 --> 00:25:06.645 But at least in the IRS's eyes, that does not count as earned income. 00:25:06.905 --> 00:25:11.275 So if you do have, if you're married and you do have a spouse, a significant 00:25:11.305 --> 00:25:15.605 other that stays at home and they do not have any earned income, You 00:25:15.605 --> 00:25:17.825 will not qualify for this at all. 00:25:17.875 --> 00:25:23.635 Not a zero dollar is not eligible to be put towards dependent care You can't 00:25:23.645 --> 00:25:27.285 pay your family members to watch your kids Anyone that you're claiming on 00:25:27.285 --> 00:25:32.535 your tax return you can't pay to take care of your kids Older siblings, so 00:25:32.535 --> 00:25:36.845 there's a lot of there's a lot of special circumstances with this but I think 00:25:37.045 --> 00:25:41.595 once again just knowing kind of the the dynamic at least around west metro and 00:25:41.735 --> 00:25:45.830 having a lot of stay at home moms and dads, just be very cautious about that. 00:25:46.070 --> 00:25:49.590 so one of the things and the IRS spells it out, and I've seen this 00:25:49.590 --> 00:25:54.030 happen a few times is you will be married and you have a full time job. 00:25:54.070 --> 00:25:57.760 And then your spouse or your partner they're going to school. 00:25:57.840 --> 00:25:58.840 They're going to school full time. 00:25:58.850 --> 00:26:00.060 Maybe they're going to nursing school. 00:26:00.090 --> 00:26:03.110 Maybe they're going back to get their master's in teaching, but basically 00:26:03.110 --> 00:26:08.780 they're taking the year off to go back to school there actually is within the IRS. 00:26:08.800 --> 00:26:10.360 There is provisions. 00:26:10.720 --> 00:26:15.770 That basically count full time school to count towards earned income all of 00:26:15.770 --> 00:26:19.150 the stuff that we're talking about and if you ever look in research anything, 00:26:19.250 --> 00:26:24.180 You know, someone is valid or a website or a blogger is valid if they are citing 00:26:24.180 --> 00:26:29.665 specifically tax codes or tax publications So if you have any questions about Any 00:26:29.665 --> 00:26:31.735 of this stuff I would refer you back to. 00:26:31.735 --> 00:26:32.745 It's really nerdy. 00:26:33.035 --> 00:26:35.405 It's the IRS publication 503. 00:26:35.415 --> 00:26:40.085 It talks specifically about childcare expenses, childcare, tax credits, all 00:26:40.085 --> 00:26:42.895 the things that makes it a qualified child, all these other things. 00:26:43.135 --> 00:26:47.630 Like, and honestly, The IRS actually did in my opinion something good like you 00:26:47.630 --> 00:26:51.860 don't have to have an accounting degree or have a history in taxes to understand 00:26:51.860 --> 00:26:56.080 this like they really do break it down to the pretty layman's level and they give 00:26:56.080 --> 00:26:58.980 you a lot of case studies and like well if it's this what would this look like 00:26:59.170 --> 00:27:02.540 and it's a really good starting point if you got any more questions or comments 00:27:02.540 --> 00:27:05.800 concerns about any of this stuff because once again we're talking a really high 00:27:05.800 --> 00:27:10.320 level about this but that's where I'd refer you back to is publication 503 00:27:10.610 --> 00:27:13.790 So as far as how much can we actually start putting away here, Louie, we're 00:27:13.790 --> 00:27:16.090 talking, we know how much childcare costs. 00:27:16.110 --> 00:27:16.960 You got three. 00:27:17.360 --> 00:27:18.160 I got two. 00:27:18.255 --> 00:27:18.765 Louie: my gosh. 00:27:18.765 --> 00:27:21.965 This is the bad news, I'd say, as it relates to the dependent care FSA. 00:27:21.975 --> 00:27:22.875 It's a really cool thing. 00:27:23.335 --> 00:27:26.775 Like we mentioned, the benefit of a dependent care FSA is that it allows 00:27:26.775 --> 00:27:31.835 you to, basically reduce your tax bill by the amount that you put into that. 00:27:32.315 --> 00:27:36.885 FSA, which, you know, for those of us that have 15, 000 or 20, 000 00:27:36.905 --> 00:27:41.365 worth of dependent care expenses, we'd be like, Oh, that sounds great. 00:27:41.815 --> 00:27:45.905 But unfortunately, the numbers that are set by the IRS for 00:27:45.905 --> 00:27:49.535 reimbursement, are probably not going to cover what your dependent 00:27:49.535 --> 00:27:50.975 care costs are throughout the year. 00:27:50.975 --> 00:27:54.065 And this is something that is important to both John and myself. 00:27:54.065 --> 00:27:57.085 We, kind of have a little pet project going on in the background, looking 00:27:57.085 --> 00:28:00.995 at different dependent care options and kind of how to, if there's any 00:28:00.995 --> 00:28:02.355 way we can help our members with it. 00:28:02.575 --> 00:28:04.465 Anyway, back to the dependent care FSA. 00:28:04.845 --> 00:28:07.525 Unfortunately, the IRS has set those numbers to. 00:28:07.581 --> 00:28:13.930 2, 500 for an individual or 5, 000 for a family. 00:28:14.030 --> 00:28:17.650 So that would be, you and your wife both work or you and your husband both 00:28:17.650 --> 00:28:23.300 work, you would be eligible for to contribute 5, 000 to a dependent care FSA. 00:28:23.840 --> 00:28:27.370 If only you're working, if you're divorced, which there's some 00:28:27.370 --> 00:28:31.680 other little wrinkles in that, but if it's an individual FSA, you 00:28:31.680 --> 00:28:32.630 would only be able to contribute 00:28:32.741 --> 00:28:45.600 Jon: 2, 500 for that. 00:28:45.770 --> 00:28:49.080 The majority share of custody and always refer back to your divorce 00:28:49.080 --> 00:28:52.110 decree because that will typically outline who gets who gets what? 00:28:52.380 --> 00:28:58.900 But typically if you are, the if you have your child More than more than 50 percent 00:28:58.900 --> 00:29:02.645 right and you are actually the custodian as well As per the IRS guidelines, you 00:29:02.645 --> 00:29:05.085 can actually put away a whole 5, 000. 00:29:05.085 --> 00:29:05.575 You can. 00:29:05.775 --> 00:29:08.555 So basically it's a 5, 000 limit. 00:29:08.775 --> 00:29:11.835 if you were in that circumstance or if you're a single parent for whatever 00:29:11.865 --> 00:29:15.025 reason, and there's no one else in the picture, you would actually be qualified 00:29:15.035 --> 00:29:18.265 to have 5, 000 in that, in that program. 00:29:18.285 --> 00:29:20.025 Louie: And if you split 50 50. 00:29:20.475 --> 00:29:21.235 Then you would not be 00:29:21.435 --> 00:29:21.955 Jon: Correct. 00:29:22.075 --> 00:29:25.225 And typically, and there's always, once again, I would always refer 00:29:25.235 --> 00:29:28.535 back to your divorce degree because it should spell out exactly. 00:29:28.535 --> 00:29:32.165 And sometimes people do alternating years, like you'll get credit for it this year 00:29:32.165 --> 00:29:33.665 and then the following year I get credit. 00:29:33.665 --> 00:29:37.305 So, you know, one, and this is a very individualistic, conversation. 00:29:37.305 --> 00:29:39.875 So, I don't want to try to lead too many people astray, but it's 00:29:39.995 --> 00:29:43.245 basically 5, 000 is what you're going to be able to put away. 00:29:43.245 --> 00:29:43.795 But that is basically it. 00:29:43.955 --> 00:29:45.245 It's more or less per family. 00:29:45.465 --> 00:29:49.605 So if you have access and your, your spouse or, your partner has access, 00:29:49.665 --> 00:29:53.985 it's going to be 5, 000 as a family, which, I did a little research on this. 00:29:54.225 --> 00:29:55.385 You know how long it's been? 00:29:55.415 --> 00:29:55.845 How long? 00:29:55.845 --> 00:29:58.025 So this is not been tied to inflation. 00:29:58.635 --> 00:29:59.035 All right. 00:29:59.035 --> 00:30:01.335 So this has been, I'll give you a hint. 00:30:01.355 --> 00:30:02.855 It's more than three decades. 00:30:02.925 --> 00:30:03.825 So this, this 00:30:03.965 --> 00:30:04.785 Louie: numbers were set. 00:30:04.875 --> 00:30:07.605 Jon: This was originally set in 1986. 00:30:07.875 --> 00:30:11.945 1986 is when this came into play and it was 5, 000. 00:30:12.445 --> 00:30:16.825 If you were to cautiously plug back in what inflation has been, and not 00:30:16.825 --> 00:30:19.705 even child care inflation, because much like higher education, it is 00:30:19.715 --> 00:30:23.365 inflated at a higher rate than just typical things, household goods, 00:30:23.685 --> 00:30:26.045 it would be about almost 15, 000. 00:30:26.045 --> 00:30:26.265 It's about 14, 00:30:27.560 --> 00:30:28.510 Louie: Which is more accurate. 00:30:28.535 --> 00:30:29.525 Jon: which is more accurate. 00:30:29.770 --> 00:30:30.410 Louie: what it would cost. 00:30:30.550 --> 00:30:34.150 Jon: So I would challenge this like we're trying to get a grassroots campaign here. 00:30:34.160 --> 00:30:36.890 We're trying to get More firefighters to listen. 00:30:36.890 --> 00:30:40.930 This is just outside the even the colorado metro area So if this somehow 00:30:40.960 --> 00:30:46.620 makes its way to edzo kelly the gst frankie lima himself The executive 00:30:46.620 --> 00:30:51.210 board of the iff people that are really driving policies and decisions on behalf 00:30:51.210 --> 00:30:55.825 of our members They're working their guts out right now trying to get the 00:30:56.095 --> 00:30:59.745 windfall elimination provision the WEP and the government pension office at 00:30:59.746 --> 00:31:03.985 GPO Basically repealed and they've made a lot of headway and they're actually 00:31:03.985 --> 00:31:06.315 going to vote on it in congress here in about a month So we'll see what 00:31:06.325 --> 00:31:08.995 happens with that and they've been doing excellent work If you're looking 00:31:08.995 --> 00:31:12.505 for really what's going to affect the membership moving forward and something 00:31:12.505 --> 00:31:17.045 that's tangible that would affect all IFF members Participants, I encourage 00:31:17.045 --> 00:31:21.035 you guys, I implore you guys to start, you know, getting with the lobbyists 00:31:21.035 --> 00:31:25.055 and getting with our congressional leaders and really trying to, I mean, 00:31:25.055 --> 00:31:26.625 this is something that's just not right. 00:31:26.645 --> 00:31:29.005 You can't go back for 40 years and say like, this is 00:31:29.035 --> 00:31:30.215 really, it's not even putting 00:31:30.215 --> 00:31:30.305 Louie: it. 00:31:30.365 --> 00:31:30.855 Please. 00:31:30.945 --> 00:31:31.345 Yeah. 00:31:31.365 --> 00:31:32.435 Jon: It's not putting a dent in it. 00:31:32.435 --> 00:31:34.245 And that's something that, I'm passionate about. 00:31:34.255 --> 00:31:37.095 I know who's passionate about, we got a lot of our members. 00:31:37.125 --> 00:31:41.395 it's, it's a really big challenge to pay a mortgage right now and pay for childcare. 00:31:42.025 --> 00:31:43.975 So this is something that's tangible and something. 00:31:43.975 --> 00:31:49.355 So if you're listening out there, man, grassroots, send it, smash it, subscribe, 00:31:49.365 --> 00:31:50.775 you know, tell your friends about it. 00:31:50.785 --> 00:31:53.885 And really let's get, let's get the people that are helping drive 00:31:53.895 --> 00:31:56.705 policy, because this is going to happen at the national level. 00:31:56.805 --> 00:31:57.545 we can talk about our 00:31:57.595 --> 00:32:00.965 Colorado legislators and maybe get them to co sponsor something. 00:32:00.975 --> 00:32:03.605 And we can start that way, but like, this is going to be a national thing. 00:32:03.605 --> 00:32:05.225 It's, it's part of the IRS tax code. 00:32:05.225 --> 00:32:07.915 So even if we get a couple of Colorado folks that are on board, 00:32:07.915 --> 00:32:09.125 that's not going to move the needle. 00:32:09.405 --> 00:32:10.735 They're definitely gonna have to move the needle. 00:32:10.745 --> 00:32:13.975 So it's, it's something that it's just, it's crazy to me that when I 00:32:13.975 --> 00:32:16.395 did back, when I looked back at that, I was like, you gotta be kidding me. 00:32:16.465 --> 00:32:19.725 This has almost been 40 years that this has not changed. 00:32:19.945 --> 00:32:21.545 And just the cost differences. 00:32:21.605 --> 00:32:22.555 is really crazy. 00:32:22.865 --> 00:32:26.515 So hopefully that helps just give a little bit more context, for what 00:32:26.515 --> 00:32:30.145 the dependent care FSA is all about, what you can actually contribute 00:32:30.145 --> 00:32:33.725 to, what's actually qualified expenses versus ineligible expenses. 00:32:33.945 --> 00:32:36.725 And really, just can't highlight enough that earned income. 00:32:36.985 --> 00:32:40.105 So both you and your spouse, if you have a family, you have to have. 00:32:40.385 --> 00:32:43.975 Both have to have earned income to be a qualifier for that. 00:32:44.265 --> 00:32:49.605 so one of the things that often gets misconstrued with the Dependent Care 00:32:49.615 --> 00:32:54.565 Flexible Spending Account is there's also something called the Dependent 00:32:54.625 --> 00:32:58.140 Care Flexible Spending tax credit, which is not to be confused with the 00:32:58.140 --> 00:33:01.220 child care or with the child tax credit. 00:33:01.350 --> 00:33:02.880 So there are two separate things. 00:33:03.120 --> 00:33:06.870 but once again, this is also in a publication 503. 00:33:06.880 --> 00:33:11.040 If you want to research this, it's basically a, a tax credit that you can 00:33:11.040 --> 00:33:15.980 put towards eligible childcare expenses, just like kind of the dependent care FSA. 00:33:16.320 --> 00:33:19.170 And currently it's a 3, 000. 00:33:19.170 --> 00:33:20.140 If you have. 00:33:20.315 --> 00:33:25.215 One dependent child and it's six thousand dollars if you have two or 00:33:25.215 --> 00:33:29.535 more dependent children or anyone Really that qualifies as a dependent 00:33:29.535 --> 00:33:32.505 per the irs regulations and tax code. 00:33:32.675 --> 00:33:36.890 it's not three thousand per child Child because yeah, I mean if you got six 00:33:36.900 --> 00:33:40.380 kids, you're like man, this is great, man I'm making 18 grand all day long. 00:33:40.620 --> 00:33:45.960 No, basically the max if you have more than two dependents is gonna be 6, 000 00:33:45.960 --> 00:33:48.580 so these things and the IRS is smart. 00:33:48.590 --> 00:33:52.400 They don't want you double dipping So and I find myself in this 00:33:52.400 --> 00:33:54.210 situation situation every year. 00:33:54.380 --> 00:33:57.180 So we max out our dependent care FSA. 00:33:57.440 --> 00:34:00.840 So that's 5, 000 a year that we get to put towards that. 00:34:01.100 --> 00:34:03.100 And then we have two dependent children. 00:34:03.100 --> 00:34:06.110 So basically our credit is 6, 000. 00:34:06.110 --> 00:34:10.520 So what the IRS is going to do is they're going to take that 5, 000 that I've 00:34:10.520 --> 00:34:15.750 already contributed to my dependent care FSA and subtract that from my 6, 00:34:15.751 --> 00:34:18.655 000 maximum dependent care Tax credit. 00:34:18.805 --> 00:34:22.645 So basically i'm gonna have a thousand dollar leftover tax credit if you will 00:34:22.875 --> 00:34:26.315 and from there i'm going to get a little bit more savings and really to make 00:34:26.315 --> 00:34:31.955 this very clean and pretty simple If you and I would argue most firefighters 00:34:31.955 --> 00:34:36.075 in the country are over this threshold But basically if you're over forty three 00:34:36.075 --> 00:34:41.825 thousand dollars a year adjusted gross income from a tax perspective Typically 00:34:41.825 --> 00:34:46.030 you would be better off Going with the dependent care flexible spending account 00:34:46.030 --> 00:34:49.730 maxing that out And then whatever leftover you have if you have anything left over 00:34:49.730 --> 00:34:53.560 that thousand dollars You can then use the dependent care tax credit once again, 00:34:53.560 --> 00:34:57.190 this is a lot of misinformation when I was looking doing on some research on 00:34:57.190 --> 00:35:01.350 this There's a lot of misinformation about this specifically Once again, 00:35:01.380 --> 00:35:04.780 always consult a tax professional when we're talking about taxes and everything 00:35:04.780 --> 00:35:07.130 else, but just how that how that works 00:35:07.260 --> 00:35:10.320 Louie: And John, do you know if, if you do the, if you do taxes yourself, let's 00:35:10.320 --> 00:35:15.010 say through TurboTax or other software, will it do that calculation for you? 00:35:15.040 --> 00:35:17.400 It'll determine the amount that you have through FSA spending. 00:35:18.050 --> 00:35:22.850 Jon: Yep, there's a specific box and man, I can't remember box 10, box 00:35:22.860 --> 00:35:26.480 12, something on your W 2 that you'll get from your employer that will 00:35:26.480 --> 00:35:30.460 basically say, Hey, we withheld Monday for specifically for dependent care. 00:35:30.690 --> 00:35:33.450 It's going to recognize that on the tax software and then it's 00:35:33.450 --> 00:35:36.490 going to automatically recognize like, Oh, okay, you've actually 00:35:36.490 --> 00:35:37.960 already contributed 5, 000 to this. 00:35:37.960 --> 00:35:41.450 You're actually only eligible if you've got two kids for another thousand dollars 00:35:41.700 --> 00:35:43.010 and then it'll use that multiplier. 00:35:43.010 --> 00:35:44.310 So the tax software is actually. 00:35:44.335 --> 00:35:45.635 Come up with a lot of these things. 00:35:45.635 --> 00:35:48.285 So you shouldn't have to be importing a lot of these things. 00:35:48.675 --> 00:35:53.235 there's a form, I think it's called, man, 24, 41. 00:35:53.535 --> 00:35:56.825 I think it actually itemizes like your childcare expenses. 00:35:57.085 --> 00:35:59.965 And once again, like back in the day, when you had to do this by pencil, 00:36:00.125 --> 00:36:02.825 like you'd actually have to go line by line and fill all these other things. 00:36:02.825 --> 00:36:06.635 So the software, really has come a long ways, but it will flag that. 00:36:06.635 --> 00:36:08.535 So it really shouldn't allow you to mess up on that. 00:36:08.775 --> 00:36:10.055 but I have had some people. 00:36:10.280 --> 00:36:12.960 We want a little bit more greater explanation of like, Hey, 00:36:12.960 --> 00:36:14.740 because of this, am I better off? 00:36:14.770 --> 00:36:19.070 Like not doing the dependent care and just going all in on this tax credit. 00:36:19.350 --> 00:36:23.150 And the moral of the story is for the majority of our members, I would say 00:36:23.150 --> 00:36:27.420 that it's probably in your best interest, not knowing you're specific, to go 00:36:27.420 --> 00:36:29.160 ahead and do the dependent care FSA. 00:36:29.430 --> 00:36:32.540 and the one thing I actually learned from a planning opportunity, 00:36:32.590 --> 00:36:33.670 and it just kind of hit me. 00:36:33.830 --> 00:36:38.400 So I've always been the one that Does it through, for our family, does 00:36:38.400 --> 00:36:42.530 the dependent care flexible spending account, I've always done the 5, 000 00:36:42.530 --> 00:36:45.120 and I was like, Hmm, that's interesting. 00:36:45.815 --> 00:36:50.515 We would actually save an additional about three hundred dollars if I had my 00:36:50.515 --> 00:36:55.095 wife Katie do it Because my wife Katie works for a corporation and she pays 00:36:55.095 --> 00:37:00.675 into social security So she is going to save on that FICA tax that's 6. 00:37:00.715 --> 00:37:06.275 2 percent Because this is not taxed your state Yeah, your federal 00:37:06.275 --> 00:37:10.675 state and And FICA taxes will not, will not come into play. 00:37:10.675 --> 00:37:15.035 So we actually had a little conversation around the Beatty table about like, 00:37:15.035 --> 00:37:18.565 well, maybe actually it would be better if you are the one that has 00:37:18.565 --> 00:37:19.745 this taken out, of your account. 00:37:19.795 --> 00:37:22.855 And honestly, it's 300, but it's 300. 00:37:23.105 --> 00:37:26.375 and always, once again, take into account for, All of these plans, there's a 00:37:26.375 --> 00:37:29.225 certain amount of money that it costs to administrate, and it'll definitely 00:37:29.225 --> 00:37:32.225 say on your plan documents, what it basically costs you to have this. 00:37:32.445 --> 00:37:33.365 It's a couple bucks. 00:37:33.555 --> 00:37:36.185 No, it's, it shouldn't, it should be negligible and that should 00:37:36.185 --> 00:37:37.845 not be driving the conversation. 00:37:37.855 --> 00:37:41.775 But the conversation should be driving from just like a tax perspective. 00:37:42.055 --> 00:37:46.695 Like you have the potential to save more tax if your spouse or your significant 00:37:46.735 --> 00:37:51.255 other actually has, Social security withheld from their from their employment. 00:37:51.295 --> 00:37:54.625 you can save a little bit money on that So just something something to think about. 00:37:54.995 --> 00:37:59.705 Yeah, so I just something I wanted to bring up So really why are we talking 00:37:59.715 --> 00:38:02.085 about the fsa's generally really? 00:38:02.085 --> 00:38:04.535 It's all about Trying to save on taxes, right? 00:38:04.535 --> 00:38:05.725 You already know you're going to spend this. 00:38:05.725 --> 00:38:08.355 This is not, this is not manufactured spending. 00:38:08.635 --> 00:38:10.745 This is stuff that, you know, it's coming down the pike. 00:38:10.745 --> 00:38:11.555 You're going to pay for it. 00:38:11.555 --> 00:38:15.325 So let's pay for things a little bit more strategically, use the tax code 00:38:15.335 --> 00:38:16.915 to our advantage, save on that money. 00:38:16.975 --> 00:38:18.375 And then all that money you're gonna save. 00:38:18.735 --> 00:38:21.525 We're going to invest it for later on, right? 00:38:21.535 --> 00:38:23.215 So it's all about rinse and repeat. 00:38:23.215 --> 00:38:26.385 So then you have a little bit more, wiggle room as far as that, anything 00:38:26.385 --> 00:38:31.015 else you want to add from any of the, FSA stuff, either the dependent care or the 00:38:31.015 --> 00:38:33.595 healthcare, hopefully it wasn't too weedy. 00:38:33.635 --> 00:38:35.915 Hopefully we didn't get too much in the weeds on that, but I hope 00:38:35.975 --> 00:38:38.245 we gave enough of explanations that 00:38:38.320 --> 00:38:38.540 Louie: yeah. 00:38:38.540 --> 00:38:41.610 And listen, and guys, we understand like this is a dry subject, right? 00:38:41.620 --> 00:38:45.060 Talking about FSAs, these accounts, open enrollment stuff. 00:38:45.060 --> 00:38:45.610 We get it. 00:38:45.920 --> 00:38:47.860 We just think it's important because there's a lot of questions. 00:38:47.870 --> 00:38:52.340 So if we can address some of those issues from a budget standpoint, from a financial 00:38:52.430 --> 00:38:56.050 perspective, we feel like we're doing you guys a service by providing that. 00:38:56.460 --> 00:38:58.330 And so that's why we wanted to discuss that. 00:38:58.360 --> 00:39:02.590 I would say, One thing that we want to just reiterate is look at 00:39:02.590 --> 00:39:06.330 your expenses, look at what you've spent on healthcare in the past or 00:39:06.330 --> 00:39:08.000 dependent care on the past and see. 00:39:08.240 --> 00:39:11.760 Now, if you have budgeting software, if you budget like we talked about 00:39:11.800 --> 00:39:13.790 in episode one, that's pretty easy. 00:39:13.790 --> 00:39:16.840 You can probably go through your budget and figure out what you've spent in 00:39:16.840 --> 00:39:20.170 the past and kind of see if that's your plan for this upcoming year. 00:39:20.540 --> 00:39:27.110 And you can make sure that you set your, Contribution to these FSAs appropriately. 00:39:27.150 --> 00:39:29.890 So I would just encourage you guys to really look at that and consider that 00:39:30.090 --> 00:39:32.250 as we enter open enrollment season. 00:39:32.510 --> 00:39:32.870 Jon: Yeah. 00:39:32.890 --> 00:39:33.750 Well said Louie. 00:39:34.000 --> 00:39:36.790 so now kind of the last topic that we're going to address 00:39:36.810 --> 00:39:39.280 is a health savings accounts. 00:39:39.690 --> 00:39:42.800 And this is Louie's, you're talking, this is like putting on Lionel Richie 00:39:43.030 --> 00:39:43.920 Louie: Oh yeah. 00:39:44.230 --> 00:39:44.870 Jon: Just set in the 00:39:44.910 --> 00:39:46.250 Louie: hot tub and Lionel Richie. 00:39:46.350 --> 00:39:46.840 Jon: That's right. 00:39:47.090 --> 00:39:48.310 You're setting the table. 00:39:48.350 --> 00:39:51.460 so this is something, so, once again, we'll preface this. 00:39:51.520 --> 00:39:56.070 so health savings accounts, West Metro currently local 1309 members. 00:39:56.070 --> 00:39:59.070 You do not have access to a health savings accounts. 00:39:59.410 --> 00:39:59.910 All right. 00:39:59.910 --> 00:40:05.100 So this is something that you have to have a health Insurance that 00:40:05.100 --> 00:40:11.090 qualifies for HSA eligibility in the and all the insurance companies and 00:40:11.090 --> 00:40:13.120 employer plans They're very specific. 00:40:13.150 --> 00:40:16.310 It should tell you within the title that this is a high deductible 00:40:16.310 --> 00:40:20.595 health plan HSA eligible they shouldn't be any like Well, I didn't 00:40:20.605 --> 00:40:22.055 really know that that was the case. 00:40:22.335 --> 00:40:26.275 So you should know if you have access to this, just honestly, in the title of the 00:40:26.275 --> 00:40:30.865 insurance that you have, if it's a high deductible health plan, more times than 00:40:30.875 --> 00:40:35.905 not, it will be HSA eligible, but if it specifically says that is HSA eligible 00:40:36.285 --> 00:40:40.755 in the title, you know, you're good to follow under these HSA provisions. 00:40:40.895 --> 00:40:44.505 Louie: we, and just to say it again, West Metro currently does not 00:40:44.505 --> 00:40:46.585 offer high deductible health plans. 00:40:46.865 --> 00:40:51.695 So this is not something that you as a local 1309 member would 00:40:51.705 --> 00:40:54.175 directly be able to contribute to. 00:40:54.465 --> 00:41:00.025 However, you might have a spouse who works for a company or an organization 00:41:00.495 --> 00:41:07.025 that has a A high deductible health plan that is eligible for an HSA. 00:41:07.395 --> 00:41:10.335 And in that event, there are some really cool features and some 00:41:10.335 --> 00:41:11.945 really cool things about an HSA. 00:41:12.235 --> 00:41:15.785 And we just want to talk about those in case you have that 00:41:16.135 --> 00:41:17.485 opportunity or that option. 00:41:17.700 --> 00:41:19.340 Jon: Yeah, we just wanted to raise awareness. 00:41:19.360 --> 00:41:22.520 I think there are some of our members that do have, a spouse, a 00:41:22.520 --> 00:41:26.220 significant other that does have a HSA open and they're using it. 00:41:26.220 --> 00:41:28.850 And once again, trying to reach a broader audience as well. 00:41:29.070 --> 00:41:30.890 I know just in the metro area alone. 00:41:30.900 --> 00:41:34.280 There's other departments that have high deductible health plans, HSA. 00:41:34.300 --> 00:41:36.890 So we just wanted to kind of put that information out there. 00:41:36.890 --> 00:41:40.610 So, you know, first and foremost, What, what is an HSA? 00:41:40.630 --> 00:41:41.480 What, I mean, what's, 00:41:41.725 --> 00:41:42.285 Louie: why'd you ask? 00:41:42.850 --> 00:41:46.440 Jon: What, what makes an HSA, you know, what makes it, first of all, 00:41:46.440 --> 00:41:48.640 what makes it a health savings account, but what are some, maybe 00:41:48.640 --> 00:41:50.410 the advantages of why you'd want one? 00:41:51.025 --> 00:41:55.435 Louie: so an HSA is a savings account for people that have high 00:41:55.435 --> 00:41:59.215 deductible health plans, and more importantly than a savings account. 00:41:59.215 --> 00:41:59.905 It is. 00:42:00.420 --> 00:42:01.480 An investment account. 00:42:01.820 --> 00:42:06.020 So if you have an HSA, a certain amount of your paycheck, a certain 00:42:06.030 --> 00:42:10.920 contribution amount is put into this health savings account and 00:42:10.930 --> 00:42:13.170 it's put in on a pre tax basis. 00:42:13.550 --> 00:42:15.680 A lot of people in the financial independence. 00:42:15.915 --> 00:42:17.975 Movement or the financial independence community. 00:42:17.975 --> 00:42:23.475 They really really like these accounts because They're triple tax advantaged. 00:42:23.505 --> 00:42:28.325 You'll hear that term when talking about HSAs a lot What triple tax advantage 00:42:28.325 --> 00:42:33.025 means is that the money goes in on a pre tax basis So that reduces your 00:42:33.045 --> 00:42:40.925 taxable income It grows tax free And then As long as it's spent on eligible, 00:42:41.235 --> 00:42:44.435 expenses, it is spent tax free. 00:42:44.795 --> 00:42:52.785 So in some ways it's even more powerful than, a Roth IRA or a 401k or a 4 57 00:42:53.085 --> 00:42:57.165 because you get basically that triple tax advantage from that account. 00:42:57.525 --> 00:42:57.765 So. 00:42:58.400 --> 00:43:01.640 What a lot of people do is they'll contribute to an HSA, and then they 00:43:01.640 --> 00:43:03.390 don't even spend it on healthcare. 00:43:03.390 --> 00:43:06.400 They will cashflow their medical expenses throughout the years. 00:43:07.000 --> 00:43:09.470 And then they will use their HSA. 00:43:09.470 --> 00:43:10.290 They will let it grow. 00:43:10.320 --> 00:43:11.020 They'll invest it. 00:43:11.040 --> 00:43:16.170 You can choose low cost index fund options to invest your HSA in, and then have 00:43:16.170 --> 00:43:20.110 that grow and grow and grow throughout your career, and then you can use it 00:43:20.110 --> 00:43:22.150 for healthcare expenses in retirement. 00:43:22.160 --> 00:43:25.980 You'll have this big fat account for health expenses in retirement. 00:43:26.510 --> 00:43:29.250 Jon: Yeah, that's, that's no true words have ever been said. 00:43:29.250 --> 00:43:31.970 And honestly, from like a planning perspective, there's no other 00:43:31.980 --> 00:43:36.680 vehicle that has kind of this holy grail of, of tax free options. 00:43:36.710 --> 00:43:39.870 Honestly, there's nothing, even when you're talking about, like Louie said, 00:43:39.870 --> 00:43:42.680 the, the Roth accounts and all these other things, at some point you're paying tax 00:43:42.680 --> 00:43:49.670 initially, and then it goes tax free, like this comes in pre tax, https: otter. 00:43:49.930 --> 00:43:51.770 ai 00:43:51.810 --> 00:43:52.710 Louie: income earners 00:43:52.785 --> 00:43:56.605 Jon: and work with advisors or planners, they max these things out every year 00:43:56.605 --> 00:44:00.265 because it's all, there's no income limits on this, on these either. 00:44:00.275 --> 00:44:03.135 You can be making 2 million a year and still be able to 00:44:03.135 --> 00:44:04.325 contribute to some of these things. 00:44:04.325 --> 00:44:06.505 Whereas when you're talking about some of the other retirement 00:44:06.505 --> 00:44:10.045 accounts, there does become some limitations on income and phase out 00:44:10.045 --> 00:44:11.125 limits and all these other things. 00:44:11.135 --> 00:44:15.395 So I know there's a lot of, there's a lot of, Advice and a lot of strategy 00:44:15.405 --> 00:44:19.125 involved directly with these accounts So once again, you will know if it's a 00:44:19.125 --> 00:44:23.075 high deductible health plan It'll say specifically as far as how much can 00:44:23.075 --> 00:44:24.925 you actually start squirreling away? 00:44:25.115 --> 00:44:30.605 So they actually do have the contribution limits out for 2025 So this will 00:44:30.605 --> 00:44:32.075 be for if you are self employed 00:44:32.395 --> 00:44:33.015 Louie: covered 00:44:33.105 --> 00:44:36.645 Jon: So if you're individual, it'll be 4, 300. 00:44:36.645 --> 00:44:43.425 And if you are a family, it is 8, 550 is what the IRS is allowing you to put away. 00:44:43.605 --> 00:44:48.085 So that is both between a combination of employee and employer. 00:44:48.085 --> 00:44:51.645 Cause a lot of these plans, the employer will contribute a certain 00:44:51.645 --> 00:44:53.135 amount to your health savings account. 00:44:53.395 --> 00:44:56.205 What is really important to know is this is not. 00:44:56.485 --> 00:44:58.715 Directly attached to your employer. 00:44:59.135 --> 00:45:00.875 All right, the health savings account. 00:45:00.905 --> 00:45:05.395 And one of the things that's really nice about it Besides just the tax savings 00:45:05.405 --> 00:45:10.695 is the portability So really and this is really common too in corporate america 00:45:10.935 --> 00:45:14.335 Where you work at a company for three or four years Maybe less and then go to 00:45:14.335 --> 00:45:18.185 another company for three or four years like that hsa account goes with you. 00:45:18.455 --> 00:45:21.775 You can, you just have to when you get employed again, and if you're 00:45:21.785 --> 00:45:24.455 choosing that insurance, you just have to once again, make sure that 00:45:24.455 --> 00:45:28.615 it's a high deductible health plan, that it's HSA eligible, and then you 00:45:28.615 --> 00:45:31.895 can continue on those contributions inside your health savings account. 00:45:31.895 --> 00:45:32.215 So, 00:45:32.285 --> 00:45:34.615 Louie: So John, I'll give you a little cool story about that. 00:45:34.675 --> 00:45:37.195 both my wife and I had HSAs. 00:45:37.215 --> 00:45:40.955 She has an HSA through her employer, and I had one for my last couple 00:45:40.955 --> 00:45:42.465 years when I was with the state. 00:45:42.865 --> 00:45:46.065 And so we both started squirreling away, and we did the whole financial 00:45:46.065 --> 00:45:49.165 independence kind of mindset where we were just investing it 00:45:49.475 --> 00:45:51.245 in index funds, letting it grow. 00:45:51.625 --> 00:45:57.405 when I came to West Metro, I had my HSA come over to Fidelity 00:45:57.515 --> 00:46:01.105 into their HSA account, still invested, still growing and growing. 00:46:01.515 --> 00:46:06.695 And Caitlin, meanwhile, has stayed with her, employer sponsored HSA provider. 00:46:06.835 --> 00:46:08.715 And we've just been continuing to invest that. 00:46:08.985 --> 00:46:14.245 Well, the cool thing is even though I only got to about 10, 000, in that HSA 00:46:14.245 --> 00:46:17.755 account, because it's been invested, it's been getting returns every year. 00:46:17.775 --> 00:46:21.945 And I've been able to use that for the Birth of my three children over the last 00:46:22.065 --> 00:46:24.285 four years, and I have been able to. 00:46:24.360 --> 00:46:24.910 Jon: to 00:46:25.720 --> 00:46:28.810 Louie: Pay for all of those expenses with just the HSA. 00:46:28.890 --> 00:46:33.470 So with my HSA, and I still have like almost nine or 10, 000, basically what 00:46:33.470 --> 00:46:37.970 I, basically what I had when I left CDOT, I still have because it's been invested. 00:46:37.970 --> 00:46:39.520 So that's like the powerful thing about it. 00:46:40.030 --> 00:46:42.820 We decided not to save ours for retirement because we already have hers. 00:46:43.140 --> 00:46:45.940 I'm going to have the RHS when I retire, which like we said, we'll talk 00:46:45.950 --> 00:46:47.850 about later in a different episode. 00:46:48.190 --> 00:46:51.280 But I think that just kind of shows like the power of the HSA. 00:46:51.330 --> 00:46:56.330 Like I was able to invest that and then basically use the dividends and the 00:46:56.330 --> 00:47:00.860 interest and the growth to pay for medical expenses and I still have that principle 00:47:00.860 --> 00:47:04.130 left or at least the overwhelming majority of that principle left. 00:47:04.420 --> 00:47:05.990 So I think that's why people really like them. 00:47:05.990 --> 00:47:08.910 Like that's a really, really cool thing that you don't get with an FSA. 00:47:08.910 --> 00:47:10.360 You don't get with other kind of. 00:47:11.080 --> 00:47:14.610 You know, savings accounts is you can use those all and they're all tax free. 00:47:14.720 --> 00:47:17.860 Once again, I got, I got the tax benefit when I put the money in and 00:47:17.860 --> 00:47:19.600 I got the, got the tax free growth. 00:47:19.600 --> 00:47:24.120 And when I reimbursed those hospital trips for the three boys, 00:47:24.650 --> 00:47:25.890 those were all tax free as well. 00:47:25.950 --> 00:47:26.990 That's a really, really cool 00:47:27.235 --> 00:47:28.405 Jon: It's a very cool thing. 00:47:28.415 --> 00:47:33.235 And that is a good segue, if you will, is when can you actually incur 00:47:33.285 --> 00:47:34.845 those costs and then distributions? 00:47:34.845 --> 00:47:38.073 Cause that's another thing that a lot of people have recognized is that you 00:47:38.073 --> 00:47:43.630 know, If you, are very organized like Louie is, and you can save your receipts. 00:47:43.790 --> 00:47:46.710 basically you can get reimbursed from your HSA. 00:47:46.740 --> 00:47:50.120 You can backdate it as far back as when that account first opened. 00:47:50.360 --> 00:47:53.420 So there's a lot of people that have, these accounts have been opened. 00:47:53.420 --> 00:47:53.470 I think. 00:47:53.780 --> 00:47:57.450 I think since like the early 2000s, 2003, 2005, something like that. 00:47:57.720 --> 00:48:00.000 so there's been people that have been saving that up for the last 15 00:48:00.000 --> 00:48:03.450 or 20 years, all their healthcare, they've got the receipts, and now 00:48:03.450 --> 00:48:05.910 they're starting to be in retirement, and now they're submitting those 00:48:05.910 --> 00:48:07.160 receipts for reimbursement. 00:48:07.420 --> 00:48:11.450 So it doesn't have to be in the year that you incur the cost, like the FSA is. 00:48:11.630 --> 00:48:14.090 So that's another, Difference between the two programs. 00:48:14.090 --> 00:48:16.970 But, once again, if, or if you had a major surgery or something and had a 00:48:16.990 --> 00:48:20.040 lot of bills in one year, but you were able to cashflow it and continue to 00:48:20.040 --> 00:48:24.210 save money, like you can save all those receipts for a rainy day and then when you 00:48:24.415 --> 00:48:25.415 Louie: cash them in, whenever you 00:48:25.740 --> 00:48:28.320 Jon: yeah, and when you're trying to keep your, especially when you retire and 00:48:28.320 --> 00:48:31.640 maybe you're trying to keep your taxes a little bit lower because you're getting 00:48:31.670 --> 00:48:35.820 a defined benefit now and you can't reduce that tax because it's coming in. 00:48:36.030 --> 00:48:39.280 Like there's actually money that you can go out and get that is going to be 00:48:39.390 --> 00:48:40.140 Louie: tax free 00:48:40.345 --> 00:48:41.785 Jon: And you just submit those receipts. 00:48:41.785 --> 00:48:46.365 So it's another layer, another, additional strategy that if I think you're really 00:48:46.685 --> 00:48:51.215 savvy and trying to maximize the HSA as much as possible, it ends up 00:48:51.215 --> 00:48:52.635 working really nice in your favor. 00:48:52.675 --> 00:48:54.565 There's not a lot of other programs that can do that. 00:48:54.935 --> 00:48:56.305 Louie: it's a really cool program 00:48:56.575 --> 00:48:59.025 Jon: so that was, I'm really happy that you addressed that. 00:48:59.185 --> 00:49:03.155 The one thing that I did forget to admit that, you actually are, much like a lot 00:49:03.155 --> 00:49:08.495 of the other retirement vehicles, you are able to save an additional 1, 000 a year 00:49:08.535 --> 00:49:11.975 in your HSA if you're over the age of 55. 00:49:12.185 --> 00:49:14.485 So just get, it's a catch up contribution. 00:49:14.485 --> 00:49:17.215 So there's a lot of money that you can squirrel away. 00:49:17.215 --> 00:49:19.215 So, really how is it different? 00:49:19.275 --> 00:49:22.835 It probably sounds simple, but how do you think a high deductible 00:49:22.835 --> 00:49:26.435 health plan is different than a non high deductible health plan? 00:49:26.435 --> 00:49:28.265 What are the, what are the major differences with that? 00:49:28.350 --> 00:49:31.060 Louie: Yeah, I think the the answer is right in the title, right? 00:49:31.060 --> 00:49:32.090 It's it's higher deductibles. 00:49:32.900 --> 00:49:37.890 So We have some lower deductibles with our health plan and in a high deductible 00:49:37.890 --> 00:49:43.235 health plan you can have deductibles that are in the Multiple thousands of 00:49:43.235 --> 00:49:47.155 dollars before you hit that deductible and for a family I think even be like 00:49:47.165 --> 00:49:50.665 ten thousand dollars or more depending on the high deductible health plan 00:49:51.335 --> 00:49:57.380 And so, you know if you're the kind of family that has a lot of medical 00:49:57.380 --> 00:50:01.760 expenses every year, maybe a high deductible health plan is not for you. 00:50:01.770 --> 00:50:05.010 Maybe that's not the best option because you'll be paying a lot out of 00:50:05.010 --> 00:50:07.070 pocket before you hit that deductible. 00:50:07.100 --> 00:50:09.330 So in that circumstance, it might not be worth it. 00:50:09.370 --> 00:50:12.570 If you're relatively healthy, if you don't have kids, maybe deductibles 00:50:13.340 --> 00:50:14.600 are never something that you ever hit. 00:50:14.660 --> 00:50:16.520 You never have to worry about out of pocket maxes. 00:50:17.175 --> 00:50:20.855 And in that case, a high deductible health plan might make sense. 00:50:20.915 --> 00:50:24.965 once again, not an option at West Metro, but very often an option, 00:50:25.195 --> 00:50:28.525 for spouses who are in fields that have high deductible health plans. 00:50:28.590 --> 00:50:30.630 Jon: And, one of those things, I mean, it sounds very easy. 00:50:30.630 --> 00:50:34.410 So typically your premiums will be a little bit lower with a high 00:50:34.410 --> 00:50:36.960 deductible health plan because you have such a high deductible. 00:50:37.140 --> 00:50:39.055 and also your max out of pocket costs can be really high. 00:50:39.095 --> 00:50:39.615 High. 00:50:39.765 --> 00:50:41.295 So just be aware of that. 00:50:41.295 --> 00:50:45.385 If you are in a high deductible health plan, having a little bit more extra in 00:50:45.385 --> 00:50:47.685 reserve in that emergency savings account. 00:50:47.895 --> 00:50:52.055 So once again, if you do have a pretty significant illness or injury in which 00:50:52.055 --> 00:50:54.065 you're not only going to hit that deductible, but then you're going to 00:50:54.065 --> 00:50:56.285 start to get to that max out of pocket. 00:50:56.325 --> 00:50:59.530 I mean, You can be talking tens of thousands of dollars in some cases, 00:50:59.740 --> 00:51:02.410 you want to be able to have that money in reserve and not have to go 00:51:02.410 --> 00:51:04.100 to a credit card or something else. 00:51:04.110 --> 00:51:05.630 So just something to be mindful of. 00:51:05.630 --> 00:51:08.980 And if you're relatively young and healthy and don't have a lot of, 00:51:09.030 --> 00:51:13.620 healthcare expensive, the HSA can be a really good strategy to set 00:51:13.620 --> 00:51:15.340 yourself up for future successes. 00:51:16.175 --> 00:51:18.485 so what is not eligible? 00:51:18.495 --> 00:51:20.375 Who is not eligible for an HSA? 00:51:20.375 --> 00:51:23.875 I think it's important to talk about that is if you're already on Medicare, 00:51:24.095 --> 00:51:26.075 that makes you HSA ineligible. 00:51:26.075 --> 00:51:27.245 You can't contribute to that. 00:51:27.455 --> 00:51:30.065 if you're covered by another health insurance policy, 00:51:30.245 --> 00:51:31.595 or if you you're dependent. 00:51:31.730 --> 00:51:33.020 For income tax purposes. 00:51:33.020 --> 00:51:37.140 Those are kind of the three big outliers of who is not eligible, but for the most 00:51:37.150 --> 00:51:40.550 part it's going to be it's going to be the majority of people that will be eligible 00:51:40.550 --> 00:51:44.630 that at least are listening to this So maybe to wrap up at least a little bit of 00:51:44.670 --> 00:51:49.610 why use the hsa we already talked about it three levels of tax savings right the holy 00:51:49.610 --> 00:51:52.045 grail if you will Definitely portable. 00:51:52.075 --> 00:51:52.585 All right. 00:51:52.585 --> 00:51:54.525 So it's not tied to your employer. 00:51:54.525 --> 00:51:56.555 You are the owner of the account. 00:51:56.825 --> 00:51:57.175 All right. 00:51:57.175 --> 00:51:58.215 So it's transferable. 00:51:58.215 --> 00:52:02.315 If you switch jobs, it can provide that safety net for healthcare emergencies, 00:52:02.315 --> 00:52:03.675 kind of like you talked about Louie. 00:52:04.015 --> 00:52:05.615 and it's also, it can be flexible. 00:52:05.625 --> 00:52:11.015 So not only can you use it for, related healthcare expenses, but let's 00:52:11.015 --> 00:52:13.725 say you've just been really blessed and have not had any health issues. 00:52:13.805 --> 00:52:14.705 issues at all. 00:52:14.855 --> 00:52:18.825 You've been doing this for 40 years and you haven't really had 00:52:18.825 --> 00:52:20.055 to pay for much of health care. 00:52:20.055 --> 00:52:21.645 Maybe a doctor's office here or there. 00:52:21.805 --> 00:52:24.315 So you've just squirreled away half a million. 00:52:24.840 --> 00:52:26.110 Or more of money. 00:52:26.410 --> 00:52:30.960 When you get to the age of 65, the IRS will actually let you start 00:52:30.960 --> 00:52:35.940 taking out money out of your HSA for non qualified medical expenses. 00:52:36.200 --> 00:52:39.760 And then basically you're just paying ordinary taxes on, on whatever 00:52:39.760 --> 00:52:40.950 you're withdrawing in that year. 00:52:41.050 --> 00:52:43.100 So I've seen a lot of people do that as well. 00:52:43.180 --> 00:52:45.730 Louie: you're saying once I hit that age, it's just like a Roth IRA. 00:52:45.970 --> 00:52:47.680 Jon: It's just like, it'd be like a traditional 00:52:47.840 --> 00:52:48.410 Louie: or traditional 00:52:48.550 --> 00:52:49.010 Jon: exactly. 00:52:49.010 --> 00:52:51.390 It'd be just like a traditional IRA where you're just going to get 00:52:51.420 --> 00:52:54.850 whatever, minus the basis, what you're taking out, that's going to be taxed 00:52:54.850 --> 00:52:56.680 at your normal, marginal tax rate. 00:52:56.720 --> 00:52:57.620 And then you go from there. 00:52:57.620 --> 00:53:00.530 So once again, like from the planning perspective, the. 00:53:00.695 --> 00:53:04.555 You know the person that really nerds out on that stuff like it offers a tremendous 00:53:04.595 --> 00:53:08.555 amount of flexibility one thing I would be remissed if we didn't talk about 00:53:08.555 --> 00:53:12.985 this and it's very common and I don't think it's articulated very well, and 00:53:12.985 --> 00:53:19.345 i'm not blaming anyone for this but it's can you use an hsa and an fsa together? 00:53:19.680 --> 00:53:20.370 Louie: Of course, 00:53:20.575 --> 00:53:24.395 Jon: You must you must be able to it sounds too good to be true well 00:53:24.415 --> 00:53:26.990 in the irs's eyes It kind of is. 00:53:27.030 --> 00:53:32.650 So, first of all, you can always use a dependent care FSA with an HSA. 00:53:32.670 --> 00:53:35.260 That is, that is kosher all day long. 00:53:35.680 --> 00:53:38.200 I would recommend doing that if you have access to both. 00:53:38.580 --> 00:53:42.690 you can use, once again, what we talked about in the beginning of the segment, 00:53:42.880 --> 00:53:46.615 a limited purpose healthcare FSA. 00:53:46.815 --> 00:53:50.555 with an HSA that will also make you a HSA eligible. 00:53:50.805 --> 00:53:56.905 What you cannot do is you cannot have a general purpose healthcare 00:53:56.905 --> 00:53:59.835 FSA and an HSA at the same time. 00:54:00.085 --> 00:54:04.965 And really where you get tricked up with this is, let's take an example where 00:54:05.025 --> 00:54:07.365 we have, a firefighter that works here. 00:54:07.395 --> 00:54:09.885 They're on, The fire department's insurance. 00:54:10.145 --> 00:54:10.535 All right. 00:54:10.535 --> 00:54:13.695 And their spouse is on another employer's insurance. 00:54:13.975 --> 00:54:17.315 once again, here at West Metro, we don't have health, HSAs. 00:54:17.525 --> 00:54:20.475 so they're just on our regular insurance, but they're like, you know what? 00:54:20.475 --> 00:54:22.255 I think we're going to have some medical expenses coming up. 00:54:22.255 --> 00:54:23.785 We're expecting a kid next year. 00:54:23.955 --> 00:54:24.795 I'm going to save up. 00:54:24.840 --> 00:54:28.870 3, 000 for, in, in my FSA and my healthcare FSA. 00:54:28.870 --> 00:54:29.840 So they elect that. 00:54:30.270 --> 00:54:34.040 Meanwhile, their spouse is on an HSA plan. 00:54:34.660 --> 00:54:38.250 This is where it gets tricky is, as soon as you elect that coverage 00:54:38.260 --> 00:54:42.610 and you start contributing to that, healthcare FSA, you will then make 00:54:42.610 --> 00:54:48.030 your spouse ineligible from an HSA contribution standpoint, not only from 00:54:48.030 --> 00:54:50.810 the employer, but also from the employee. 00:54:51.150 --> 00:54:52.510 So something to be. 00:54:52.610 --> 00:54:55.760 Cautious of it doesn't mean that they're going to lose their health insurance. 00:54:55.810 --> 00:54:58.780 They still have health insurance, but their ability to contribute 00:54:58.790 --> 00:55:00.990 to that savings plan is gone. 00:55:01.160 --> 00:55:04.330 And you can actually, if you, if you let that go unchecked, you can actually end up 00:55:04.330 --> 00:55:06.760 paying some, excise taxes down the road. 00:55:07.090 --> 00:55:09.450 And it sounds really weird, but you're like, well, I have my own insurance 00:55:09.460 --> 00:55:10.500 and they have their own insurance. 00:55:10.500 --> 00:55:11.400 Like, why is that? 00:55:11.400 --> 00:55:15.690 Because the IRS really doesn't care because even if you are the only one on 00:55:15.690 --> 00:55:20.220 the insurance from the fire department, you can still use that those monies. 00:55:20.480 --> 00:55:24.950 Those FSA monies, those healthcare monies to then pay for certain expenses 00:55:24.950 --> 00:55:26.290 that your other spouse may have. 00:55:26.290 --> 00:55:27.880 So it just makes it ineligible. 00:55:27.880 --> 00:55:31.100 So I, before we did the pot, I was talking to someone about this 00:55:31.100 --> 00:55:32.820 or I, I had no idea that was the 00:55:33.085 --> 00:55:34.175 Louie: You were probably talking to me. 00:55:34.175 --> 00:55:35.705 I honestly, I didn't know that either. 00:55:35.705 --> 00:55:39.065 I, we were talking about this maybe a couple of days ago and I. 00:55:39.150 --> 00:55:41.690 I was like, man, I didn't know that you couldn't contribute to an 00:55:41.700 --> 00:55:45.600 health, a healthcare FSA and an HSA if you have two separate, you know, 00:55:45.610 --> 00:55:47.750 employee sponsored health plans. 00:55:47.760 --> 00:55:49.000 So thanks for sharing that. 00:55:49.115 --> 00:55:49.735 Jon: Yeah, no, 00:55:49.770 --> 00:55:52.380 Louie: like a very little known thing, or there's probably at 00:55:52.380 --> 00:55:53.720 least a lot of confusion about it. 00:55:53.720 --> 00:55:55.120 So thanks for clearing that 00:55:55.135 --> 00:55:56.925 Jon: Very small nuanced stuff. 00:55:56.925 --> 00:56:00.405 So once again, that's kind of I think our goal here is stuff that comes up like 00:56:00.445 --> 00:56:05.185 hsa's are very common especially for our spouses and our significant others at the 00:56:05.185 --> 00:56:09.195 fire department So we just wanted to kind of shed some light So, it's something to 00:56:09.195 --> 00:56:13.670 think about there anything else as far as Topics that we should be covering? 00:56:14.060 --> 00:56:14.350 HSAs, 00:56:14.765 --> 00:56:15.595 Louie: FSAs? 00:56:15.895 --> 00:56:17.285 No, I mean, that was a deep dive. 00:56:17.345 --> 00:56:18.335 I know that's a lot of. 00:56:18.505 --> 00:56:22.485 A lot of heavy material, but, it is important and it's an option that at least 00:56:22.495 --> 00:56:23.955 some of those options are available to us. 00:56:23.965 --> 00:56:29.045 So I'm glad that we kind of cut into it and maybe hopefully shed 00:56:29.045 --> 00:56:31.665 some light on how that works. 00:56:31.970 --> 00:56:32.310 Jon: Yeah. 00:56:32.350 --> 00:56:35.650 And once again, we're always trying to solicit feedback. 00:56:35.680 --> 00:56:40.080 We want to make this stuff that is usable for the members out 00:56:40.080 --> 00:56:41.270 there, the audience out there. 00:56:41.270 --> 00:56:45.610 So once again, if you guys want to hit us up, best way is probably 00:56:45.610 --> 00:56:48.780 email askfiscalfirehouseatgmail. 00:56:48.780 --> 00:56:49.260 com. 00:56:49.490 --> 00:56:51.620 that will go directly to Louie and I's inbox. 00:56:51.650 --> 00:56:52.800 And, we'll start going through those. 00:56:52.800 --> 00:56:55.280 We've already received Couple, we're going to start getting to 00:56:55.280 --> 00:56:58.480 some, user questions here in the future and build that into the pod. 00:56:58.720 --> 00:57:02.530 but really appreciate, we've had a lot of really, strong feedback from the members 00:57:02.530 --> 00:57:05.260 that, a lot of them are very appreciative of what we're trying to do here. 00:57:05.260 --> 00:57:08.020 So that definitely gives us motivation and keeps it going. 00:57:08.020 --> 00:57:11.270 And once again, we're trying to grow this grassroots style. 00:57:11.500 --> 00:57:12.500 man, if I get an email from. 00:57:12.575 --> 00:57:14.245 from Edzo Kelly within a couple of days. 00:57:14.245 --> 00:57:14.805 And this thing has 00:57:14.862 --> 00:57:15.595 Louie: will. 00:57:15.855 --> 00:57:18.785 Jon: I know, I know we're making some ground, but this is important. 00:57:18.795 --> 00:57:24.075 Like there is a lot of financial advice and there's a lot of financial podcasts. 00:57:24.325 --> 00:57:28.145 but none, and I try to search it out that are tailored to professional 00:57:28.155 --> 00:57:30.635 firefighters, and that's what we're trying to do here is we're trying to give you 00:57:30.635 --> 00:57:35.275 guys information that is specifically for firefighters and improving the 00:57:35.275 --> 00:57:37.295 financial literacy of firefighters. 00:57:37.385 --> 00:57:41.585 So until, next month we'll be signing off, but, thanks for all you guys 00:57:41.585 --> 00:57:43.055 do out there, be safe out there. 00:57:43.630 --> 00:57:44.240 Louie: Thanks everyone. 00:57:44.755 --> 00:57:45.130 Jon: Take care. 00:57:48.333 --> 00:57:51.733 The Fiscal Firehouse Podcast is a podcast curated specifically 00:57:51.743 --> 00:57:53.453 for local 1309 members. 00:57:53.603 --> 00:57:57.243 This podcast is for informational and educational purposes only, 00:57:57.643 --> 00:58:00.373 and should not be construed as professional financial advice. 00:58:00.583 --> 00:58:03.303 Should you need professional advice, consult a licensed 00:58:03.423 --> 00:58:05.823 financial advisor or tax advisor. 00:58:06.003 --> 00:58:09.853 The opinions of John Beatty, Louie Barela, and their castmates are 00:58:09.853 --> 00:58:13.255 solely their own, and don't reflect that of West Metro Fire Rescue.