Getting a new job? It's not uncommon to wonder what will happen to the Flexible Spending Account (FSA) money that you contributed in your current job. How does the process work and how do you make sure you don't lose your FSA money? Will it all disappear? Do you still have time to submit claims?
Your FSAaccount may not be at the top of mind before you leave, but keep in mind the following questions to make your transition smoother - and to ensure you don't lose the tax-free money you contributed!
Below there'sa roundup of the top questions related to employment changes and how these affect your FSAaccount.
Top 5 FSA Basics, Work-Related Questions:
1. What happens if I leave my employer before the end of the plan year?
Even if you leave your employer before the end of your FSA plan year, you can submit a claim to be paid out of the FSA for qualified health expenses that you incurred before leaving. Typically, these claims must be submitted by 90 days after the end of your plan participation.
2. I used all of the money in my FSA account in the beginning of the plan year. Then I left my employer. Do I have to pay my employer back for the amount I used that had not yet been taken out of my paycheck?
No. You will not have to return that money.
3. My spouse and I are each offered FSA account at work. Can we both have one?
Yes. But you are not allowed to use both FSAs to pay for the same expense.
4. Can I continue to use an FSA after I retire?
No. Retirees are not eligible to have an FSA.
5. I am self-employed. Can I have an FSA?
No. Only permanent employees working for a company that offers FSAs can enroll for these plans. Some company owners or employees with high incomes may also face limitations.