[mkcarman]

I just recently started a new job and as of January 1, 2008, they funded a flexible spending account. I now want to terminate my employment. Can they get their money back out of my flexible spending account? I haven't used but $15.00 of it and they've deducted $43.00 from my 1/4/08 payroll check. If not, can they deduct the $1,000.00 they funded out of my final paycheck with the company. Someone has told me they can't do either and they will just lose that money. That doesn't sound right. Thanks for any help you can give.

Kay

[Wildsporty]

Spend your remaining funds before you terminate your employment, as your employer is not allowed to reimburse you any unused monies remaining in your account. This is due to the "use it or lose it rule" as stipulated by the IRS. You ran the risk of losing any remaining funds, if you do not take precautionary measures. Precautionary measures you can take include incurring all your medical expenses prior to quitting your job. You can do this by visiting your eye doctor; purchasing an extra hearing aid or an additional pair of glasses. In addition, you can also have a physical if you have not had one recently.

Check with your employer (read your benefit guidelines), as there might be provisions for you to use the funds, probably until the end of the month. In addition, you might want to check to see if your company offers a run-out period for you to submit any outstanding claims that have a date of service prior to your termination date

And Also FSA is eligible for Cobra

COBRA is also applicable for the Flexible Savings Accounts; it allows the employee to continue his Flexible Savings Account even if the employee does not continue the COBRA health insurance. In order to keep your FSA benefits under COBRA, you continue your payments as normal plus pay any additional fees

What this means to you is either you use the money before you terminate or you elect Cobra for the FSA plan.