Rehired Participant can use accumulated spending account to pay for ex

[Guest rachd]

We have a situation which we are unclear about. An employee terminated in March and had already been a participant in the cafeteria plan but hadn't used up their medical expense account. This employee was rehired in October. The plan document states that they cannot reenter the plan until the next plan year but we are wondering if they can use the money that is still in their medical expense account- for claims after their rehire date? (we do know that they could still use that money for expenses incurred before their term date) Any input would be greatly appreciated!!

Thanks,

Rachel

*** If anyone has any idea, please respond! We need to figure it out ASAP! Thanks!

[SLuskin]

It seems like the former participant lost the money. If he is not eligible to participate, then he can't submit claims for expenses incurred after his termination date.

When all else fails, consult your plan document. Also, make sure this language is clear in your SPD.