Effective Date of FSC

[Guest beth20]

An employee has a change in status April 20th (marriage) and elects to add money to a flexible spending account. Benefits company states the effective date of EE FSC should be 5/20 because that was the date EE signed change form. EE is arguing that change should be 4/20 because that was date of change. Employers handbook does not list which date should be used.

[KIP KRAUS]

It has always been my understanding that monies put into a FSA must be differed before earned, so I would say that a retroactive deferral would not be allowed.

[papogi]

Only birth and adoption are events where flex elections are retro to the status change date. Marriage is an event where the new flex election (health coverage as well as FSA) should be effective on the day the form is returned.