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didn't read the fine print

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mrs ice

Junior Member
What is the name of your state?NC at previous employer signed up accidentally for dependent care reimbursement thinking it was for my husbands medical reimbursements, $400 later i find out no i would have to have children under 13, or a husband disabled. My employer told me the irs won't let them return this, but in other words the co gets to keep it. Is there no way i could pay taxes on this, and receive a reimbursement. someone please help :eek:
 


cbg

I'm a Northern Girl
I don't think so - IRS regs on this are pretty strict. But let me look at this for a bit and I'll post again later.
 

cbg

I'm a Northern Girl
I've put this question in front of the most knowledgeable group of HR people I know, and I'm afraid you're not going to like the answer.

IF your former employer offers a medical FSA, you can REQUEST (but you cannot require) that they transfer the monies into the medical account. But even then you can only access them IF you have any expenses, incurred before your termination date, that are payable under a medical FSA.

If your employer does not offer a medical FSA, or if they refuse to make the transfer (which they are not required to do) or if you have no payable expenses under a medical FSA, there is nothing you can do. The law specifically states that any monies left in either a dependent care or medical FSA are NOT returnable to the employee regardless of whether they offer to pay the taxes or not. That's why it is so important in both cases that you not elect to have more taken out than you are going to use. It also is why it is so important to read the fine print.
 

mrs ice

Junior Member
cbg said:
I've put this question in front of the most knowledgeable group of HR people I know, and I'm afraid you're not going to like the answer.

IF your former employer offers a medical FSA, you can REQUEST (but you cannot require) that they transfer the monies into the medical account. But even then you can only access them IF you have any expenses, incurred before your termination date, that are payable under a medical FSA.

If your employer does not offer a medical FSA, or if they refuse to make the transfer (which they are not required to do) or if you have no payable expenses under a medical FSA, there is nothing you can do. The law specifically states that any monies left in either a dependent care or medical FSA are NOT returnable to the employee regardless of whether they offer to pay the taxes or not. That's why it is so important in both cases that you not elect to have more taken out than you are going to use. It also is why it is so important to read the fine print.
thanks for the info., so basically if i messed up and put money into a dependent flexible spending account, and don't have children, it is up to the employer if they want to reimburse money, can they do that under something other than dependent, like family medical? Is it actually an IRS thing? Thanks in advance for your help!!!! :eek:
 

cbg

I'm a Northern Girl
Yes, it is actually an IRS thing, and they could lose their right to offer a dependent care account altogether if they illegally reimbursed you. Because this is a pre-tax benefit, it is VERY heavily regulated by the IRS and subject to audit. They do not have the option of reimbursing you even if they want to and even if you are willing to pay the taxes.

IF they offer a medical FSA AND IF they choose to call it an administrative error and transfer the funds to it AND IF you actually have bills incurred BEFORE your termination that would be reimbursable under a medical FSA, then you can get back some or all of it in the form of reimbursements. That is the ONLY way you can legally get any of the money back. You are NOT going to get it back as income under ANY circumstances. You will have to provide them with copies of the reimbursable expenses IF they are willing to do this for you at all.

However, as I said, since by your own admission this was your error, not theirs, they have no legal obligation to take responsibility for the mistake (which is what they would be doing by calling it an adminstrative error). And if they don't have a medical FSA, the whole thing is moot. Likewise it is moot if you do not have any reimbursable expenses under a medical FSA.
 

mrs ice

Junior Member
cbg said:
Yes, it is actually an IRS thing, and they could lose their right to offer a dependent care account altogether if they illegally reimbursed you. Because this is a pre-tax benefit, it is VERY heavily regulated by the IRS and subject to audit. They do not have the option of reimbursing you even if they want to and even if you are willing to pay the taxes.

IF they offer a medical FSA AND IF they choose to call it an administrative error and transfer the funds to it AND IF you actually have bills incurred BEFORE your termination that would be reimbursable under a medical FSA, then you can get back some or all of it in the form of reimbursements. That is the ONLY way you can legally get any of the money back. You are NOT going to get it back as income under ANY circumstances. You will have to provide them with copies of the reimbursable expenses IF they are willing to do this for you at all.

However, as I said, since by your own admission this was your error, not theirs, they have no legal obligation to take responsibility for the mistake (which is what they would be doing by calling it an adminstrative error). And if they don't have a medical FSA, the whole thing is moot. Likewise it is moot if you do not have any reimbursable expenses under a medical FSA.
thank you for giving me the info, yes they have a medical FSA, i will ask if they would consider saying it was an administrative error, but considering the luck i have had with them in the past i doubt they will. But, all they can do is say no. So, my medical expenses would have had to have been before termination date, is that the law, or is that up to the corp? Thanks in advance, your input has been very helpful.
 

cbg

I'm a Northern Girl
Yes, that is the law. The company has no control or choice over that. And it has to be REIMBURSABLE expenses. They will be able to tell you what expenses can and cannot be paid, if indeed they are willing to make the shift at all.

Anything pre-tax is going to be VERY heavily regulated and the company will have very little option as to how to handle them.
 

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