Over Spending Flex Spending Account

[Ubeatm]

What is the name of your state? Wisconsin

I have given two weeks notice to my employer (June 10, 2005). I had medical expenses which occurred before I gave my two weeks notice. I am enrolled in my company's flex spending plan. My medical expense reimbursements have exceeded my contribution thus far. I was not planning on leaving the company when I enrolled in the plan, but was offered a job out of the blue from another company. Can my current company legally take the difference from my last pay check? Isn't the IRS' "at-risk" rule warn companys of this possibility?

 

[pattytx]

No they may not.

 

[marbol]

No they may not.

Really? That's interesting. Why is this? Does it have something to do with the company possibly loosing the tax exempt status? Or something else.

I'd like to piggy back in here, because I have a similar question.

I have a medical cafeteria plan also, and I was terminated. My employer did not take the balance out of the last paycheck. Does that mean I am entitled to continue to make claims on that money, and my last employer has to send me the checks?

Thanks

 

[cbg]

The law specifically states that both employer and employee share risk on medical flex spending accounts. If you have overdrawn the account, the employer cannot require you to overpay the overage. But if you have money left over in the account and no claims against it, you don't get it returned to you either.

Note: this does NOT apply to dependent care spending accounts.

 

[pattytx]

Nor is the employer required to withhold the balance of your annual contribution from your final paycheck. You can only make claims up for expenses incurred before the date of your termination.