help with FSA issue

[Guest hrinpa]

Hello

I am hoping you folks can help me.

I made an idiot mistake signing up for my FSA in Dec. I calculated my needs based on my Spouse and I - BUT, my spouse is same-sex and therefore not eligible. I will now be very over-extended in the contribution.

OOPS

I would like to call/write our HR Dept and admin of the FSA explaining the mistake and asking for amount to be reduced. I would claim mistaken information. The online enrollment had a drop down on coverage labeled "Spouse/Domestic Partner" which I used ot order my partner a Debit card. They sent the card. Evidently they think my partner is covered too!!

Can I get any help? Are there any rulings I can point to to support my claim? It is very early in the year - we haven't even been paid yet or had a deduction.

Thanks in advance for any help!!!

[QDROphile]

Your partner may be eligible as a dependent. That depends on support and domicile.

Your partner may be eligible, but with different tax consequences than you expected.

Your partner may be ineligible. If the employer was at all responsible for the mistake, including by having confusing enrollment communications, then the employer should allow correction of the mistake, which would include a new election amount (although that amount might be zero -- but better than leaving a lot of claims money to be forfeited).

If the employer is not at all involved in the mistake, the mistake should be corrected to remove the ineligible person, but you probably would not be able to change the mistaken amount elected.

Your administrator should the best source of assistance. Get going.

[Guest hrinpa]

Your partner may be eligible as a dependent. That depends on support and domicile.

Your partner may be eligible, but with different tax consequences than you expected.

Your partner may be ineligible. If the employer was at all responsible for the mistake, including by having confusing enrollment communications, then the employer should allow correction of the mistake, which would include a new election amount (although that amount might be zero -- but better than leaving a lot of claims money to be forfeited).

If the employer is not at all involved in the mistake, the mistake should be corrected to remove the ineligible person, but you probably would not be able to change the mistaken amount elected.

Your administrator should the best source of assistance. Get going.

Thank you.

My partner is definitely NOT eligible.

The enrollment was misleading (IMHO). at the very least, it was not helpful in determining eligiblility. Considering it was a walkthrough web interface, it could have easily indicated a difference between "Spouse" and "SS Spouse/Dom Partner."

We will contact them tomorrow when they open! Thanks again.

[Chaz]

The IRS cafeteria plan regulations do not specifically address election changes based on "mistake" but it seems reasonable to permit a change based on obvious mistake. What is "obvious," however, is in the eye of the beholder. If I were an employer, I would permit election changes based on mistake only in very, very limited circumstances (such as a childless employee setting aside money in a DCAP for child care for a non-existent child).

Note that an employer generally does not "have" to permit any election changes at all.

[MARYMM]

The IRS cafeteria plan regulations do not specifically address election changes based on "mistake" but it seems reasonable to permit a change based on obvious mistake. What is "obvious," however, is in the eye of the beholder. If I were an employer, I would permit election changes based on mistake only in very, very limited circumstances (such as a childless employee setting aside money in a DCAP for child care for a non-existent child).

Note that an employer generally does not "have" to permit any election changes at all.

Since it is so early in the year (assuming calendar year = plan year), and the confusing enrollment process,your employer may be willing to allow you to undo/revise your election.

[Guest odessa477]

There is still a bit of a chance that they will allow you to revise the election.