Changing j*b, medical 125 problem

[ProspectiveBum]

I'm in the process of switching to a new job, and have run into a problem with my 125 account at my old employer. I've got $1,750 in the account, and haven't made any claims against it this year (yet). The fund administrators are basically saying that I must forfeit the funds because I haven't filed any claims. They're further saying that I won't be able to file claims for those funds in the future because I'll no longer be an employee. That can't be right, can it? Do I have any recourse here?

I'd used a 125 for dependent care previously, which worked well because those expenses were greater than my contributions to the flex account. In the case of the medical, it's not looking like such a good deal.

 

[easysurfer]

I'm not familiar with 125s, but I think with FSAs that's how things work.

When I left (in Jan of '98), I could have maxed out my FSA and left in January and would not have to pay back the amount since I planned out so much in my FSA. But once having left, am not allowed to claim anything unused in the FSA.

I probably should have done that -- maxed out my medical costs -- physicals, new glases, stocked up OTC medication, etc. up to the FSA before leaving to not leave anything on the table.

 

[jwkde]

yes i belive that is how it works - you can only claim expenses during your employment time with them.

I always like to use up the bulk of mine in January (eye glasses, contacts,physicals) so that that I am using company money during the year.

 

[ProspectiveBum]

Ouch. Well, that was an expensive lesson learned.

 

[DangerMouse]

Check to see what the cutoff date is. Is it your final day of employment or is there a 30 day grace period.

 

[Alan]

Check to see what the cutoff date is. Is it your final day of employment or is there a 30 day grace period.

I had a 60 day cutoff period to claim for services rendered before the official date of retirement. Also allowed to claim a year's worth of "intended" contributions. For 2010 I was having $100/month deposited from paycheck to FSA. Official retirement date was 3/2/10 so in Jan and Feb we went to the dentist, eye doctor etc and even though I had only contributed $200 before RE'ing I was able to claim up to $1,200. I just put in the last claim this week, once I'd received the EOB for the dentist.