Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next
Author: wtam Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121355  
Subject: Re: Receipt of FSA Funds Date: 10/12/2004 3:55 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
in my experience that is indeed the case.

for flexible spending accounts, or healthcare spending accounts, reimbursement is made as expenses are incurred and submitted, up to the elected contribution amount for the year.

if the employee indeed incurs and gets reimbursed for the expense early in the year and then leaves, the employer is stuck. however, across many employees it does wash out, because any unused contributions by employees the employee loses. also, in the case of a merger or sale of your division your plan may terminate and instead of having until yearend to incur the expenses you planned and are contributing for, you have only until the date the acquisition closes and your existing plan terminated. if you had expenses backended in the year and the deal closes mid year the employee may again lose the portion of his contribution not used by the acquisition date instead of his planned yearend date.

note: this contrasts with dependent care spending accounts, where you are not reimbursed for more than you have paid in. if you submit an expense for more than you paid in, the unreimbursed amount is tracked and paid out as more funds are contributed.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Apple

Microsoft Admits Defeat and Wins?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement