eligile travel expenses under an FSA

[Guest scm2005]

I have an employee who is asking if airfare for him and his wife can be reimbursed under an FSA. They are traveling with their 1 year old son for some follow-up medical care. I'm fairly sure that expenses can be reimbursed for one parent (plus the child), but not sure about BOTH parents. Also, what about hotel expenses?

[Guest Kristine]

The plan is for the employee and their tax dependents. There is no limit on only one parent being able to be reimbursed for travel. Yes, hotel expenses can be reimbursed at a certain rate.

I have an employee who is asking if airfare for him and his wife can be reimbursed under an FSA. They are traveling with their 1 year old son for some follow-up medical care. I'm fairly sure that expenses can be reimbursed for one parent (plus the child), but not sure about BOTH parents. Also, what about hotel expenses?

[papogi]

See Pub 502.

The patient's transportation expenses are reimbursable. If the patient is a minor and needs a travel companion, Pub 502 says that expenses are reimbursable for "a" parent. That could mean one parent, but if you ask each parent separately, "Are you a parent of the child?", each would answer Yes. That would mean that both parents are allowed. Certainly no brothers/sisters. Kind of depends how you look at it...

[Lori Friedman]

You can find some very helpful discussions in PLR 8516025 and PLR 8321042.

It's worth noting that PLR 8516025 refers to "parents", in the plural, accompanying a child.

[LRDG]

Sec. 213 identifies medical expenses eligible for income tax deduction and by reference, eligible for exclusion from taxable income via FSA under a medical reimbursement account.

Sec. 213 contains a defination of reasonable hotel expenses for medicaly necessary over night travel as not more than $50 per night.

My interpertation of 'parent' with respect to airfare as outlined in Sec. 213, has language to the effect that expenses for both parents would be more than necessary.

The defination contains an example similar to "Unless one parent is a organ doner/patient of the child/patient, in which case the non-patient parent's airfare/travel expenses would be eligible"

I'm not aware of recent amendments to Sec. 213, but you may want to verify that.