FSA

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anonenigma
Posts: 452
Joined: Thu Apr 21, 2011 11:58 pm

FSA

Post by anonenigma » Mon Sep 04, 2017 7:15 pm

I work for an organization that is fiscally sponsored by a 501(c)(3), which provides health benefits and an FSA option. The plan year begins October 1.

My organization will become an independent 501(c)(3) late this year. What happens with the FSA in this situation? If my wife and I go to the optometrist and get glasses in October before the spinoff, will we have to repay the funds we used from the FSA beyond what we contributed? If not, who gets left holding the bag - the fiscal sponsor or the FSA vendor?

Are we better off waiting to use the FSA from the new 501(c)(3)?

{I know what happens with an FSA if one leaves a job, but this situation might be different.]

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