Flex spending account/Debit card tax Q

[marbol]

What is the name of your state? Texas

This might more properly belong in the federal Tax section, but....

I had a flexible spending health account with debit card at an ex employer. I quit on Sept 1 of 2005. I have some claims that occured during that time that I haven't turned in yet. However, it's still the taxable year.

I contacted my flex-card/HSA company and they told me they couldn't allow me to file anything after the termination date.

Number 1, that's not right since some insurances take 2 months to send out EOBs, and so I'm a little late filing. They won't process it without an EOB, so now that I have one, I should be able to file claims against them and have them paid for that time when I was employed.

Is that not true? How do I go about looking for laws on this?

Thanks

 

[usaohol]

Flex Account

When you have a flex acocunt money comes out of each of your paychecks and is paid into that account. You quit your job and were no longer paying into the account and most likely exhausted the funds that were in it already, in turn they cannot pay any additional claims.

 

[marbol]

When you have a flex acocunt money comes out of each of your paychecks and is paid into that account. You quit your job and were no longer paying into the account and most likely exhausted the funds that were in it already, in turn they cannot pay any additional claims.

No. This is not a cafeteria plan. This is a HRA, a health reimbursement account. The employer stated that 1000 dollars a year goes into this account. And I had not used on penny of it. The dollars were supposed to go in August 1st. I quit as of Sept 1 and tried to submit claims in October since the insurance companies take a month or two to mail out EOBs. However, I was told the money was gone when I quit.

So that's not what happened in this case.

 

[usaohol]

What is the name of your state? Texas

This might more properly belong in the federal Tax section, but....

I had a flexible spending health account with debit card at an ex employer. I quit on Sept 1 of 2005. I have some claims that occured during that time that I haven't turned in yet. However, it's still the taxable year.

I contacted my flex-card/HSA company and they told me they couldn't allow me to file anything after the termination date.

Number 1, that's not right since some insurances take 2 months to send out EOBs, and so I'm a little late filing. They won't process it without an EOB, so now that I have one, I should be able to file claims against them and have them paid for that time when I was employed.

Is that not true? How do I go about looking for laws on this?

Thanks

First you should be certain the type of account you have you said you had a flex spending account.

for a HCRA

Distributions From an HRA
Distributions from an HRA must be paid to reimburse you for qualified medical expenses you have incurred. The expense must have been incurred on or after the date you are enrolled in the HRA. If any distribution is, or can be, made for other than the reimbursement of qualified medical expenses, any distribution (including reimbursement of qualified medical expenses) made in the current tax year is included in gross income.

Reimbursements under an HRA can be made to the following persons.

Current and former employees.

Spouses and dependents of those employees.

Any person you could have claimed as a dependent on your return if that person had not received $3,200 or more of gross income or had not filed a joint return.

Any person you could have claimed as a dependent except that you, or your spouse if filing jointly, were claimed as a dependent on someone else's 2005 return.

Spouses and dependents of deceased employees.

http://www.irs.gov/publications/p969/ar02.html#d0e1807

 

[usaohol]

You also need to check with your plan, some will pay only up to xx number of days after termination or may have some cobra requirements.

check with the HR department of your former employer

 

[marbol]

You also need to check with your plan, some will pay only up to xx number of days after termination or may have some cobra requirements.

check with the HR department of your former employer

Well - that's the point. The HR department of my former employer says they won't pay anything that happened after the termination date. My point is that I had covered expenses that I could only prove after I receive the EOB from the insurance company. Tho'se EOB's come in the mail about one month to two months after the event occurs.

So my question is how can an employer just all of a suddent disallow any expenses that would have been covered without providing me xxx number of days to turn in the paperwork?

 

[usaohol]

Well - that's the point. The HR department of my former employer says they won't pay anything that happened after the termination date. My point is that I had covered expenses that I could only prove after I receive the EOB from the insurance company. Tho'se EOB's come in the mail about one month to two months after the event occurs.

So my question is how can an employer just all of a suddent disallow any expenses that would have been covered without providing me xxx number of days to turn in the paperwork?

If it is a HRA.....
If they applied the money to your account in one lump sum 1000.00 and it was available during the last month of your employment then they have to pay expenses incurred during that time. They do not have to put all in the account in one lump sum "The HR department of my former employer says they won't pay anything that happened after the termination " from what you are saying they are telling you they will not pay for anything after termination which is correct they do not have to. Only the expenses incurred during the period you were enrolled.
Did you submit the claim for reimbursement?