Flex Spending benefit after termination of employment

[12AX7]

Employee is terminated and has money remaining in their FSA account from payroll withholding. Can that employee get reimbursed for medical expenses after their employment terminated? If so, is their a cite for that? Thanks.

[GBurns]

The final COBRA regs might be your answer. See Q6: http://www.irs.gov/pub/irs-regs/td8928.pdf

[12AX7]

George, I'm not finding the answer in Q6:

Q-6: How is the number of group health plans that an employer or employee organization

maintains determined?

Thanks.

[Chaz]

The general rule is that the employee might be able to elect COBRA for the amounts in the FSA account if the employee had, as of the date of termination contributed more to his or her account than he or she was reimbursed for as of that date.

[GBurns]

Sorry it should have been A 8 on page 31 (if your format is the same as mine).

[Guest sniffles]

Employee can submit any claims prior to their termination for reimbursement. The claims must be for service dates prior to the termination. If the employee does not have enough claims (prior to termination) to submit to draw down their balance then they would have to elect Cobra for the Flex Plan and keep paying in until they have claims to submit.