Flexible Spending Account for working less than a year?


M

Martin Lynch

I will be quitting my job in July 2004.

For the 2004 year, if I specify $400 as my yearly FSA
contribution, and they deduct on a per month basis, come
July, when I have only put in about $200 by the time I quit,
will they then take a lump sum of another $200 out of my pay
to make it $400, or will they just say that I ended up
contributing $200 total for the year?

I'd like to know, because I would like to put in $400 total
this year, so should I specify $800, knowing that by the
time I quit my job, I will only have put in about $400?

Thanks
 
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A

Arthur L. Rubin

Martin said:
I will be quitting my job in July 2004.
(He wants to decide how much to specify for
his FSA account.)

You might consider the fact that, with medical FSA
accounts, you can spend the money BEFORE you deposit
it. Hence, if you specify $400, you can spend
the entire $400 in January, or at any time corresponding
to SERVICES in 2004 before you quit.

The amount actually contributed is irrelevant.
 
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A

Arthur Kamlet

Martin Lynch said:
I will be quitting my job in July 2004.

For the 2004 year, if I specify $400 as my yearly FSA
contribution, and they deduct on a per month basis, come
July, when I have only put in about $200 by the time I quit,
will they then take a lump sum of another $200 out of my pay
to make it $400, or will they just say that I ended up
contributing $200 total for the year?

I'd like to know, because I would like to put in $400 total
this year, so should I specify $800, knowing that by the
time I quit my job, I will only have put in about $400?
You will have fixed periodic contribution to the plan for
each pay period.

So if you leave in mid year only 200 will be paid in. If
you incur allowable reimbursable medical expenses of 400
while still employed, you will reimbursed the full 400. Not
so for child care -=- you will be reimbursed only up to the
amount contributed.

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
 

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