What is the name of your state (only U.S. law)? Maryland but company is based out of Chicago.
I was laid off on 2/18 and had allocated $2K to my FSA. I had already submitted claims for more than I had paid in ($1085 worth) and had a bit over $900 remaining before my termination date. I still have $500 worth of eligible medical expenses that were incurred up through my last day in the plan (2/28) and am aware that I have 90 days to submit the claims.
However, the Director of HR told me I was not allowed to submit any more claims even for eligible expenses incurred before termination because I have already surpassed what I paid in. Looking over the paperwork I signed and past experience, my understanding is that according to IRS regulations, a FSA participant is allowed to submit and be fully reimbursed for all eligible claims incurred through their plan termination date, up to their annual election amount, even if it exceeds what has been paid in (as both employee and employer take an equal "risk" with the annual allocation of funds).
I received a FSA balance report today and it showed an adjusted and incorrect annual election amount of only $416 and not the original $2K and now reflects a negative amount available…
I think my former employer is trying to save money as they are not doing well right now. (I also have yet to be reimbursed for one last work-related expense although I submitted the receipts and info with my last timesheet – but that is another matter).
What is the actual law (or IRS regulations) surrounding this matter?
Thanks!
I was laid off on 2/18 and had allocated $2K to my FSA. I had already submitted claims for more than I had paid in ($1085 worth) and had a bit over $900 remaining before my termination date. I still have $500 worth of eligible medical expenses that were incurred up through my last day in the plan (2/28) and am aware that I have 90 days to submit the claims.
However, the Director of HR told me I was not allowed to submit any more claims even for eligible expenses incurred before termination because I have already surpassed what I paid in. Looking over the paperwork I signed and past experience, my understanding is that according to IRS regulations, a FSA participant is allowed to submit and be fully reimbursed for all eligible claims incurred through their plan termination date, up to their annual election amount, even if it exceeds what has been paid in (as both employee and employer take an equal "risk" with the annual allocation of funds).
I received a FSA balance report today and it showed an adjusted and incorrect annual election amount of only $416 and not the original $2K and now reflects a negative amount available…
I think my former employer is trying to save money as they are not doing well right now. (I also have yet to be reimbursed for one last work-related expense although I submitted the receipts and info with my last timesheet – but that is another matter).
What is the actual law (or IRS regulations) surrounding this matter?
Thanks!
