FSA dispostion upon involuntary position elimination

[cpr4722]

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

I was recently terminated from my job. I have been electing to have $185 placed into a healthcare FSA due to plans for extensive dental work for my sons that is in the pre-auth process and has not yet been performed.

My company said I can only submit receipts up to the date of my termination. How can this be fair when I did not resign voluntarily?

They also said I could continue to participate on an after-tax basis through Cobra. If I do this, am I entitled to reduce my level of contribution due to a qualifying event ... losing my job? I am the major income in my family and cannot afford Cobra as it is let alone FSA level contribution.What is the name of your state (only U.S. law)?

 

[pattytx]

"Fair" is not the issue. The expenses MUST have been incurred during your term of employment. There is no exception in the IRS regulations based on the reason for separation from employment.
http://youdrive.enterpriseholdings.com/us/faq/fsa.asp
http://www.infinisource.net/Employee/fsa_faq.aspx#h5

That's probably correct, but what's the point?
http://www.infinisource.net/Employee/fsa_faq.aspx#c2

 

[cbg]

Federal law, not your employer and not what is "fair", determines the distribution of FSA plans. What your employer has told you is correct. It is what the law requires. Neither you nor your employer has any control over it. IT IS THE LAW that all expenses must have been incurred before the end of your employment, regardless of how your employment ends. The ONLY other option is, as your employer told you, to elect to participate through COBRA on an after-tax basis. Again, this is the law and not your employer being obstructionist.

 

[Zigner]

"Fair" is not the issue. The expenses MUST have been incurred during your term of employment.

That's not how I interpreted the OP. It seems to me that the OP incurred expenses prior to termination and just hadn't turned in the receipts yet. Now, the company won't let him turn in the receipts.

 

[pattytx]

extensive dental work for my sons that is in the pre-auth process and has not yet been performed.

Not done yet.

 

[Zigner]

I'll head in to my corner now...