By law they have to make your entire flex spending account available to you. If you’ve got it maxed out that’s $2500 dollars. Use it all up. They can’t take it back from you or take it from your last check. That’s the risk they carry by providing the benefit. Use that up before you quit. It’s like a free 2500 dollar going away present. I know I’ll be using all of mine.
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Maybe RIF vs quit is different but I never got billed for my FSA when RIFd in March. Now you can do a COBRA continutation of it, which seems pointless as it is after tax. Is that possibly what you did @5trh which is why you get billed?
I'm pretty sure keeping it is fine, the flip side of the use it or lose it, where unspent money (in an FSA) goes away at the end of the year
The OP is wrong. If you use up all of your HSA before you retire Verizon will bill you monthly for the remainder that you owe. And, you will be paying it back with after tax dollars! I know. I was riffed in May. If what the OP is saying is true Verizon would take away that benefit quickly. Look how the FMLA cheats ruined the sick day policy for the rest of us.
OP is correct (except you have to use it for approved expenses, not just anything). For Health Spending accounts, the full amount (that you chose in open enrollement) is available to you the first day of the year. So if you did put $2,500 in, you can use that on approved expenses incurred up to the day you leave payroll. So in my case I had about $1000, and when RIFd in March, I was able to spend about $950 of it. So I left $50, but I had only contributed about $250, so $700 free.
Dependent spending accounts are not like this, you can only withdraw what has been paid in.
How do I get some of that free $2500
Wrong. You font understand fsa rules.
What is a flex spending account ?