FSA plan year - how does it work?

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rasputin
Posts: 214
Joined: Tue Mar 29, 2011 6:40 pm

FSA plan year - how does it work?

Post by rasputin » Mon Mar 12, 2018 5:23 pm

Both my wife and I are starting new jobs this year and need to estimate how much to withhold for FSA accounts. We incurred expenses between the new year (likely start of the FSA plan year) and the start of our FSA accounts. Are we allowed to use our FSA account to pay for eligible incurred expenses that occurred shortly before our employer sponsored FSA accounts were started?

I hope my question makes sense.

Thanks

runner3081
Posts: 1713
Joined: Mon Aug 22, 2016 3:22 pm

Re: FSA plan year - how does it work?

Post by runner3081 » Mon Mar 12, 2018 5:32 pm

rasputin wrote:
Mon Mar 12, 2018 5:23 pm
Are we allowed to use our FSA account to pay for eligible incurred expenses that occurred shortly before our employer sponsored FSA accounts were started?
No.

soccerrules
Posts: 803
Joined: Mon Nov 14, 2016 4:01 pm

Re: FSA plan year - how does it work?

Post by soccerrules » Tue Mar 13, 2018 8:26 am

I would check with your plan/benefits coordinator but typically you can be reimbursed for eligible expenses if they are incurred on,
1) Day 1 of the new FSA plan year (typically Jan 1 for most companies)
2) Day 1 of new employment if you enroll in company Health benefits program and sign up for FSA deduction (check this though for actual eligibility date with your plan)

With the FSA if you are planning on contributing $1,500 for the full year, you can use/be reimbursed for the full amount at anytime during the plan year , even though you have not contributed enough to cover the eligible expense. Different than the HSA where the funds need to be present in the account to be used/withdrawn.

to agree with Runner you can not be reimbursed for expenses that were not incurred during the "plan year". Most FSA plans allow for some time after the plan year to complete the reimbursement process, again as long as the expense was incurred during the year you were enrolled in the plan and you have funds still available to use.
Don't let your outflow exceed your income or your upkeep will be your downfall.

rasputin
Posts: 214
Joined: Tue Mar 29, 2011 6:40 pm

Re: FSA plan year - how does it work?

Post by rasputin » Tue Mar 13, 2018 10:26 am

>2) Day 1 of new employment if you enroll in company Health benefits program and sign up for FSA deduction (check this though for actual eligibility date with your plan)

I accept this and yet...ug...WHHHHHYYYY. What does someone with a job that provides an FSA deserve tax advantaged payments and others don't?

That makes _zero_ sense to me.

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