Thread regarding Wells Fargo & Co. layoffs

flexible spending account and severance

as someone who was severed, i am posting on how the health flexible spending accounts worked for me. my severance crossed years and i has three months of severance in 2023. i signed up for the full amount of the fsa for 2023 knowing that i would of course only pay in for the first three months of the year. i knew i would have heavy medical in those three months and was able to receive reimbursement for the full year fsa amount even though i only paid in for the first three months-wells nets this loss against those who dont take the full benefit. the key is you can only get reimbursements for expenses incurred while you are on severance--but the fsa amount avaiable if what you sign up for for the year--not the amount you actually paid in

hope clear-- it is confusing

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Post ID: @OP+1svby5kt

4 replies (most recent on top)

HRA is treated like a FSA. Both are use it or lose it. Several people leave money unused and firm gives that to the next years crowd. Please note an FSA is much much much different than an HSA which is yours to keep til death (and then goes to heirs). I love HSA for length and many other reasons and FSA are nice but short term.

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Post ID: @1aga+1svby5kt

Anyone saying you can take the full years amount out not just what you put in is not correct. You may get it out but WF will take it back from your severance. Rally dollars are yours to use.

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Post ID: @1knj+1svby5kt

@1dnn+1svby5kt You can only take an HSA with you after severance ends. An HRA belongs to the employer.

I also elected the full FSA amount for 2024, completed $800 worth of Rally activities that went into my HRA and spent it all this year before my severance ended.

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Post ID: @1suy+1svby5kt

If you have HRA money and do COBRA, you should still have access to any money you contributed that year. I guess I should call HR and ask. I hadn’t thought about this so thank you for bringing it up. Now I can make sure I am prepared.

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Post ID: @1dnn+1svby5kt

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