FSA for Retirees

[Guest chloe]

Here's what should be a simple question, but the question has thrown me. Can a health care FSA be offered to retirees? I know a cafeteria plan must be for employees and cannot be created just for retirees. But the definition of "employee" includes present and former employees. So, doesn't that mean that an FSA can be offered to retirees as long as its also available to active employees? Or am I missing some other provision of the rules?

[Guest j-g]

The answer is no unless they continue their FSA coverage through COBRA. Only active employees may participate.

[QDROphile]

j-g:

Does your answer apply to FSAs that have employer credits from sources other than salary reductions?