Flexible medical spending account?

Question

I enrolled in flexible spending account for this year but changed job. The account management people said any transaction I claimed against this account must occur prior to termination of the job. This is strange as I thought this to cover the full year or be able to rollover my contribution to the FSA of the new employer.

Does anyone know if legally they should cover my full year of expense or support such roll-over?

Answer 1

Since your contributions to your FSA terminated at the termination of your employment, they cannot pay any claims past the amount of money that you contributed prior to termination. If your new employer has a FSA, you would have to see if the plan allows you to start contributions during the plan year.

Answer 2

I thought an FSA would be a good idea, but gee whiz- the rules and regulations they make to keep YOUR money and not pay claims is incredible. You might be able to find all the details online if they have a website. I know we spent 90% of our FSA between Dec 20-Dec 31.
Mine says- If you terminate participation in the Health Care or Dependent Care Spending Account at any time during the year, whether because of your termination of employment or the occurrence of a life changing event or otherwise, you may submit a claim for reimbursement of eligible health care expenses after your participation ends. The expenses must have been incurred prior to termination of your plan participation and they must be submitted for reimbursement within 90 days of termination of your plan participation.

Answer 3

i think of you're able to sign in, they are large. the money is taken out of your verify earlier taxes, so which you do no longer pay taxes on it. via fact which you haven't any longer have been given substantial scientific purchases, you're able to do the minimum (for my enterprise that is $10 in line with paycheck, it rather is $240 a year). you should use it for copays on the scientific professional, dentist, any extra expenses like my dentist expenses $35 for flouride that assurance would not disguise, so I pay for it with the FSA. additionally in case you have any prescriptions like delivery administration, you pays for it with the FSA. some plans even allow you to purchase stuff like Tylenol and cough drops with it. So that is property you will pay for anyhow, so why no longer pay with money that hasn't been taxed.

Answer 4

Read the flex rules for you plan... Some companies will let you roll over your flex dollars, and some won't. Some will let you transfer them to your new job, others won't.... Its legal... But, not very nice.

Answer 5

You might contact the IRS and ask this question.