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WARNING: FSA (Flexible Spending Account) perhaps a top level post on real concerns for RIFees.
As explained by UC in 2006 the FSA behaves like an insurance policy. If you chose a $5000 limit that translates to a $192.31/paycheck 'premium'. The 'policy' is canceled upon your termination i.e. Jan 10,2008. If you had no medical expenses Jan.1 through Jan. 10 you lose the 'premium' you will pay on Jan. 4, 2008. On the other hand if the stress sends you to the hospital on Jan. 9 with $5000 out-of-pocket expense then you will be reimbursed the full $5000.
Note you have until Nov.30, 2007 to select the FSA option in open enrollment.
Perhaps somebody from LANL benefits can verify this since they are monitoring this blog.
Use your creativity with this - do you or someone in your family want/need Lasik? You can have the procedure done before January 10 - about $3500 - and only pay the FSA amount for January. Need eyeglasses or dentures or other medical equipment allowed by FSA? How about prescriptions? Purchase between January 1 and 10 at any amount up to the amount elected, not what you have committed to for January only. This is a great loophole that doesn't require you to have the entire amount of your elected amount at the time of expenditure.
ReplyDeleteI suggest that this blog is not the correct forum for obtaining this information.
ReplyDeletejeez, focus on the bigger picture and not the piddly shit. There are much larger more significant issues that a $5K FSA
ReplyDeleteAlthough "participation" in the FSA would end on January 10 (no more payments unless COBRA continuation is elected), the policy for any terminating or retiring employee, I believe, used to be that expenses incurred through the end of the following month (i.e., until Feb 29) are eligible for reimbursement against the full annual amount. This policy may have changed--my reading of LANS Benefits answers to related questions is that there is some (Benefits) confusion on this issue. Anyone listening in from Benefits want to research and definitively answer this question?
ReplyDelete