Flexible spending account $ showing up as income AND expense


I made an account in my YNAB called "Flexible Spending Account", which is where the dollars will sit for the year until I need to use them for healthcare expenses, like co-pays and prescriptions, etc. 

At the beginning of January, when the money shows up in the real account, I added a transaction in YNAB for this account and split it into the different budget sub-categories I have that are associated with healthcare expenses and assigned those dollars to be available in those sub-categories.

Those budget sub-categories show expenses for those amounts, but also show that the money available in each sub-category is equal to the amount of the (fake) expense. Also on the reports it shows expenses for all of those sub-categories for the month of January.

So, what do I need to do to fix it, so that the Flexible Spending Account money doesn't show up as an expense in January, and so that it still remains as available to spend for those sub-categories?

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  • On the report for income, in the web version of YNAB, it shows that the Flexible Spending Account additions for January did not show up as income.

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    • Hi Maroon Memory !

      The income that entered the Flexible Spending Account should be categorized as Inflow: To Be Budgeted. That will add the amount to your To Be Budgeted so that you can budget it towards the Health Expenses sub-categories.

      For instance, let's say you add $500 to your Flexible Spending Account. If you categorize that $500 as Inflow: To Be Budgeted, you'll have that $500 appear in your To Be Budgeted amount. You can then budget $250 towards a "co-pay" category and $250 towards a "prescriptions" category. Those funds will be listed in the Available column and you won't need to enter a transaction for expenses until you actually pay the copay or purchase a subscription.

      I hope that helps, but let me know if you still have questions! :)

      Reply Like 2
      • pepperpat
      • pepperpat
      • 5 mths ago
      • Reported - view

      Faness I've been struggling to figure out how to handle my FSA and I think this method will work for me. YNAB Support is great!

      Reply Like
    • Hi pepperpat - I'm so glad that method will work for you! If you need help, let us know. 😀

      Reply Like 1
  • Hey Maroon Memory !

    It's been a couple of days so I'm going to mark this as answered. If you're still having trouble, just mention me in a comment and I'll get back to you! :)

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  • 5 mths agoLast active
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