6 & 7 - Prepay mortgage and flexible accound dollars
January 12th, 2007 | 
Author: 6. Use flexible spending account dollars. A new law enacted for 2005/2006 loosened the use-it-or-lose-it constraint by allowing spending plan participants to make claims against their accounts for up to two months and 15 days after the end of their benefit year. That means employees on a calendar benefit year now can use their 2006 FSA contributions for expenses incurred as late as March 15, 2007. And if you’re planning any elective surgery (e.g., laser eye surgery) for next year, you can prepay enough to use up this year’s shortfall and allocate those expenses to next year’s medical reimbursement plan.
7. Prepay your mortgage payment. If you itemize deductions, consider paying your January 2007 mortgage payment by December 31, 2006 to deduct the interest this year.
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