My wife and I have a Flexible Medical Spending Account through our employers. We have a situation where we have money remaining in both our accounts as we over-estimated what we thought we’d spend. Our plan has a grace period until March 15, 2017 but, I am unable to get a straight answer about that.
Does that mean that we can incur allowable medical expenses up to March 15, 2017 and use 2016 contributions to pay for it
or
Does that mean we can “file” for expenses incurred during 2016 up to March 15, 2017?
I can’t get a straight answer out of our HR department or the (**() company that administers the plan.
It depends on the wording within the plan. Most allow you to incur and submit allowable expenses, but not all.
Safer bet is get new glasses or spend it on another allowable expense prior to year end.
quote:did you copy this from your post on The Hull Truth?
Yes, as a matter of fact I did. Sucks that I can’t rely on my own HR department or the company that administers my plan for a straight answer. I was hoping that I could find one here or there. We put money into it for the dreaded colonoscopy only to find in January that colonoscopies are now free under our plan. So, all that money we thought we needed for that has not been spent. Not a bad problem to have but, I don’t want to lose that money.
“Apathy is the Glove into Which Evil Slips It’s Hand”, but really, who cares?
“Generally” FSA funds must be spent within your program year, then they give you that grace period to file the paperwork. For example, maybe your health care plan year ends on Dec 31st, but you can file paperwork for costs incurred BEFORE Dec 31 by March 15. This gives you a chance to submit those bills that come in late.
The answer is it depends on the rules your employer has for the plan they offer. They are required to have a Plan Document and must provide it to you if you request it.
Participants can submit claims at any time during the current claim period (the plan year or period designated in the employer’s Plan Document and/or Summary Plan Description) and for a specified period after the claim period (called the “Run-Out Period”) as defined by the employer’s Summary Plan Description (SPD).
You generally must use the money in an FSA within the plan year. But your employer may offer one of 2 options:
•It can provide a “grace period” of up to 2 ½ extra months to use the money in your FSA.
•It can allow you to carry over up to $500 per year to use in the following year.
Your employer can offer either one of these options but not both. It’s not required to offer either one.
If you find it ends Dec 31 consider lasik, eye glasses, visits to doctors you may not normally see (dermatologist, orthopedic, etc.), refill prescriptions early, get a physical, get a blood test to measure D3 (definitely do this), dental work, or if your eyelids are drooping get that fixed.
If your company offers a high deductible plan you should look at it and get away from the FSA trap. I reviewed an insurance plan for a friend last week. The way the options were set up it was cheaper to go with the high deductible plan unless the person has a repeated annual history of 20+ doctor visits to different doctors.
DF, the bride and I have HSA accounts (different employers)that allow costs incurred up to March 31st of the following year. 2016 contributions can be used in 2017 till March 31st.
Better get with your HR folks. EDIT, just saw where you got with HR…WTH??
First of all, ditch it next year and replace with HSA. Next, check the eligibility list and stock up on items. Get a sick first aid kit for the home and boat.
First of all, ditch it next year and replace with HSA. Next, check the eligibility list and stock up on items. Get a sick first aid kit for the home and boat.
Thanks Skinee, thought he was referring to an HSA already.
Weird stuff as the IRS dictates tax deductions and timeframes.
We just had this extension to March 31st added a couple years ago. used to be end of year.
