If you already read my other post about FSA's

Taytee

I did finally find the part on our website concerning this Wiki statement about FSA's but basically it supports this:

"One consideration regarding medical FSAs is that the participating employee's entire annual contribution is available at the start of the plan year, commonly January 1, or after the first contribution to the FSA is received by the FSA vendor, depending on the plan. Therefore, if the employee experiences a qualifying event during the first period, the entire amount of the annual contribution can be claimed against the FSA benefits. If the employee is terminated, quits, or is unable to return to work, he does not have to repay the money to the employer."

SarahPLiz

I didn't see your other post, but yes, this is how it works. You don't have to pay it back to the employer or the FSA administrator. At the end of every plan year, the employer and the FSA administrator square up their records. Some people don't spend all theirs and some people overspend. THe excess either way goes to the company and that's the risk a company takes by offering an FSA. THe larger the pool of employees, the less the risk to the company, usually.

amycathy

That's interesting to know about the payback portion. Ian going to look at mine again.

 

 

 

 

BabyTime01032012

SarahPLiz:

. Some people don't spend all theirs and some people overspend. THe excess either way goes to the company and that's the risk a company takes by offering an FSA. THe larger the pool of employees, the less the risk to the company, usually.

Wow.  I didn't know that you could overspend and they would still pay for it.  I have a debit/credit card and I just assumed that when the money ran out, the card just wouldn't work. 

Taytee

BabyTime01032012:

SarahPLiz:

. Some people don't spend all theirs and some people overspend. THe excess either way goes to the company and that's the risk a company takes by offering an FSA. THe larger the pool of employees, the less the risk to the company, usually.

Wow.  I didn't know that you could overspend and they would still pay for it.  I have a debit/credit card and I just assumed that when the money ran out, the card just wouldn't work. 

I don't think that's what she means! What she means is that not everyone's money is fully paid into the plan when they spend it all. If I leave my job in the next 2-3 months, I'll not have paid into it the full amount I'm going to spend. Therefore, I will have "overspent" the amount I've paid into the account.

BabyTime01032012

Taytee:

BabyTime01032012:

SarahPLiz:

. Some people don't spend all theirs and some people overspend. THe excess either way goes to the company and that's the risk a company takes by offering an FSA. THe larger the pool of employees, the less the risk to the company, usually.

Wow.  I didn't know that you could overspend and they would still pay for it.  I have a debit/credit card and I just assumed that when the money ran out, the card just wouldn't work. 

I don't think that's what she means! What she means is that not everyone's money is fully paid into the plan when they spend it all. If I leave my job in the next 2-3 months, I'll not have paid into it the full amount I'm going to spend. Therefore, I will have "overspent" the amount I've paid into the account.

Oh, thanks for explaining.  That makes a lot more sense! 

SarahPLiz

Yep, that's what I meant. Sorry for the confusion.

KittyFX

When I left my job, I had not spent yet what I had put in and I lost that money. Sucked because I asked HR about it before I quit and they said I could still submit claims for some time period but they were wrong.