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I contributed $50/month into a flexible spending plan in 2007 working for MarineMax of Clear water, Florida. On 9/21/07 I...

I contributed $50/month into a flexible spending plan in 2007 working for MarineMax of Clear water, Florida. On 9/21/07 I...

Q: Can I submit expenses incurred after my employment ends?

No, you cannot submit expenses incurred after your employment ends for reimbursement from your flexible spending account. The plan typically only covers expenses incurred while you were actively employed, and any expenses after your last day are not eligible.

Q: What is a flexible spending plan?

A flexible spending plan (FSA) is a benefit that allows employees to set aside pre-tax dollars for eligible medical expenses. This helps reduce taxable income and allows employees to save on healthcare costs. However, the funds must be used for expenses incurred during the employment period.

Q: Are there any exceptions to the rules for flexible spending accounts?

Generally, there are no exceptions that allow for reimbursement of expenses incurred after employment ends. However, specific plans may have unique provisions, so it’s essential to review your plan documents or consult with the plan administrator for details.

Q: What should I do if I have unused funds in my FSA?

If you have unused funds in your flexible spending account after leaving your job, those funds are typically forfeited unless your plan allows for a grace period or carryover. Check your plan details to understand your options and any deadlines for submitting claims.

Full question:

I contributed $50/month into a flexible spending plan in 2007 working for MarineMax of Clear water, Florida. On 9/21/07 I resigned from Marine Max with 3 weeks notice. Subsequently, I've incurred eligible expenses to be submitted for reimbursement from my flexible spending plan. The plan administrator - Blue Cross & Blue Shield says that they will only reimburse me for those expenses incurred while I was employed by Marine Max up through 9/21/07 and that any expenses incurred after my last date of employment are not eligible for reimbursement and I would forfeit any unused funds. Is this a legal implementation of a flexible spending plan?

Category: Employment
Date: 04/07/2025
State: Florida

Answer:

The account cannot be maintained if the employee is no longer working for the employer.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What happens to my flexible spending account after I leave my job?

Once you leave your job, you generally cannot access or use your flexible spending account (FSA) for expenses incurred after your last day of employment. Any unused funds in the account may be forfeited, as the account is tied to your employment status. It's important to submit any eligible expenses incurred while you were employed before your departure.