I had planned on getting braces this year so I opened an FSA through my employer and contributed what I had estimated the costs would be. Ultimately, I didn't get the braces nor did I accrue enough medical expenses to get back the full amount I contributed. Now I have nearly $1,000 in my account that I am going to lose. (Yes, I was aware of the use-it-or-lose-it clause when I signed up.) Does anyone know where the $ goes? My employer? The company which manages the account? The government? Is there no way to get at least some of the money back? Of course, I'd be willing to pay taxes and a reasonable "administrative" fee but I think it's so unfair that I can't get a refund.
2007-01-12 13:31:21 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
My HR department told me it goes to the company. No way to get it back if you didn't use it, the IRS sets those rule. You don't want to mess with them.
2007-01-12 14:00:32 · answer #1 · answered by Sun and Sand 3 · 0⤊ 0⤋
Where I work, we can "carry over" our expenses for 2 months in the next year. After that, I think you just lose the $$$. I think it goes to the insurance company.
2007-01-12 13:39:44 · answer #2 · answered by Deasel98 5 · 0⤊ 0⤋
The government gets to keep it.
I stand corrected upon further research the money is retained by the company and used to offest adminstrative costs
2007-01-12 13:39:06 · answer #3 · answered by Mn 6 · 0⤊ 0⤋
Your company keeps it. They are not allowed to give it back to you.
2007-01-12 14:24:08 · answer #4 · answered by thenameisthesame 4 · 0⤊ 0⤋