FSA when fired

[dasielady]

What is the name of your state (only U.S. law)? Wisconsin

I started a new job on 12/27/2010 and was terminated on 2/8/2011. I signed up for a flexible spending account for child care, at $230 of withholding per two-week pay period.

I received paychecks on 1/21 (for 12/27-1/7), and 2/4 (for 1/10-1/21) for which there was no FSA withholding. I received two more paychecks on 2/18 (for 1/24 - 2/4) and on 3/4 (for 2/7-2/8) for which there was $230 of withholding on each paycheck.

I paid $200 per week (or $400 per pay period) in out of pocket child care. I submitted reciepts for child care for the last two weeks of January and the first two weeks of February, assuming that they with an overage of reciepts, I would ensure that I would get back all of my payments in. Unfortunately, it has not turned out that way. They claim that my benefits began on 2/1 and ended on 2/8, so despite the fact that they withheld from two paychecks, or a whole month's worth of wages, they will only honor reciepts dated during those 8 days.

Do you know if they are right, or if I am right that there is something wrong with the reimbursement or withholding policy here?

Thanks!

 

[cbg]

The dependent care FSA accounts are even more rigidly managed, by law, than a health/medical care FSA. On what date did you make your FSA election?

 

[dasielady]

I made the election to contribute on 1/21. We were told that we could make our elections any time between 1/1 and 1/30.

 

[swalsh411]

Then what you were told is correct. The eligible dates are between the first date of the plan year (Feb 1) and your termination date (Feb 8).

 

[cbg]

Assuming that swalsh is understanding you correctly and that the plan year begins on February 1, that is correct. Under no circumstances can you submit receipts for dates prior to the start of the plan year. And based on your explanation of how the deductions were taken, it does sound as if s/he is correct.

If the start of the plan year was NOT February 1, please post back.