Strategy for paying large medical expense
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This year I’ll have a large medical expense not covered by insurance. It will be somewhere between $25,000-30,000.
Firstly I’m paying for everything with 2% Fidelity credit card. I’m planning on paying $10,000 with savings, but a large chunk of it will then go onto a 0% balance transfer to pay off over the next year or balance transfer roulette until it’s complete.
I’m wondering about the best way to increase my take home in order to pay for it. Of course we are also making lifestyle changes as well with regard to spending.
Here are the options I’m considering:
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Don’t contribute to 2017 Roth IRA (my least favorite option, but obviously that’s $11,000 right off the bat)
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Lower 403b contribution currently at ~$8500 for year (I don’t get a match so only impact will be on taxes.) I’m paying into a pension as well so it won’t be my only payment into retirement savings for the year.
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Change withholding from “Married withhold as Single” back to Married
We will most likely have enough medical expenses in 2018 to take itemized deduction even with the higher standard deduction. Another question is if I should switch the 403b to Roth 403b should I contribute this year.
2017 AGI is $158,000
Any advice on this is appreciated. Thanks.
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No FSA? No HSA?
Those would’ve helped with at least part of it. It’s probably too late to enroll in FSA unless you have a major life event (like loss of coverage, etc).
I think if you had an FSA, you could switch jobs and get a second FSA from the 2nd job (I believe the FSA funds immediately, not as you go). Come to think of it, if you switch jobs, you can probably add FSA/HSA now. Maybe you can find a company with a shitty medical plan that comes with an HSA as the amount can be much higher (although I’m not sure how fast it funds).
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@myotherid Have you negotiated a CASH price for these expenses. Many times that is a 20% to 50% discount over insurance charges.
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@dangeruss I didn’t mention the FSA because with $30K in expenses, the $2,600 FSA is already spoken for and paid out. Won’t be switching jobs this year.
@CouponClippen These are the cash prices.
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@myotherid said in Strategy for paying large medical expense:
@dangeruss I didn’t mention the FSA because with $30K in expenses, the $2,600 FSA is already spoken for and paid out. Won’t be switching jobs this year.
@CouponClippen These are the cash prices.
Wife’s FSA?
Also this probably won’t apply in your case, but if you guys had an HSA (which by the way doesn’t expire at the end of the year, so you can keep rolling it over), you can also get a limited FSA which can be used for certain expenses (like dental).
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@dangeruss In all the years I’ve been married I never knew FSA funds could crossover to the spouse. I thought that a spouse with their own insurance plan and their own FSA account was locked in to only using their own FSA funds. From what I can determine from various webpages that is not true. FSA funds can be used for spouses. Thank you for the tip.
