Orthodontia payments

[Guest mpark]

Employee has initial charge of $650 in 2003 but no payments made until 2004. Two payments in 2004 were made against initial $650 of$150 and $250

Are these payments eligible under FSA?

Thanks for your help - this is not my area

[Guest JerseyGirl]

For purposes of a Section 125 plan, the issue is when were the services rendered, not when the billing was issued. If the treatment plan was designed and scheduled in 2003, but the actual treatment took place in 2004, then these payments would qualify as eligible expenses for the 2004 plan year. If the information provided is unclear, ask for more detail. Orthodontic offices are used to handling this type of request, and can provide a detailed accounting of the actual dates of treatment and the expense associated with each treatment date.

Hope this helps.