FSA and breast pump question

[09Mom]

As some of you may have read, DH is going through job drama. He will either being leaving on his own (hopefully) or they will let him go at the end of the month.

We are trying to use up our FSA $. We put a lot away because DH wanted to do lasik this year. I found out yesterday it could not be used for OTC drugs, which is quite the bummer.

So, I was wondering - I am not pregnant, but we are hoping to have another. Could I buy a breast pump with his FSA debit card? I read on the boards that IRS now allows it but could not figure out if there were guidelines or restrictions.

[babyonway]

I would think that all you would need is the receipt. Is DH not going to be able to use the money for Lasik now? Does he need glasses or contacts then. Have you found any other ways to spend it? Dentist, etc?

[cucaw30]

Do you know for a fact that you have to use the $$ up before the year is over or can you still submit receipts until the end of the plan year?

[09Mom]

From what I read if you leave the company at any point in time during the year, then you forfeit any money you did not use by that time. On the flip side, all your money get banked on day 1 even though it is taken out of your check in increments, so even though DH has had maybe $700 taken out we can spend the full annual amount

From wikipedia "One consideration regarding medical FSAs is that the participating employee's entire annual contribution is available at the start of the plan year, commonly January 1, or after the first contribution to the FSA is received by the FSA vendor, depending on the plan. Therefore, if the employee experiences a qualifying event during the first period, the entire amount of the annual contribution can be claimed against the FSA benefits. If the employee is terminated, quits, or is unable to return to work, he does not have to repay the money to the employer.

If a company plans to lay off some employees, and announces such plans, then if multiple employees use their entire flexible benefit before they are terminated, that may cause the company to have to reimburse the plan. Typically, however, employers do not announce layoffs for specific employees with enough notice for employees to use the available benefits, and employees may actually lose their contributions in addition to being laid off."

[rin]

Some friends of ours had a similar situation a while back, and they ordered I think a defibrillator from Amazon, got the emailed receipt, then cancelled the order. As far as I know, they got reimbursed for the full amount on the receipt. It seemed a little iffy, honestly, but in the end it's really your money and the company would just get it if you didn't spend it in time, so I think I'd probably feel fine about it.

[JElaineB]

Some friends of ours had a similar situation a while back, and they ordered I think a defibrillator from Amazon, got the emailed receipt, then cancelled the order. As far as I know, they got reimbursed for the full amount on the receipt. It seemed a little iffy, honestly, but in the end it's really your money and the company would just get it if you didn't spend it in time, so I think I'd probably feel fine about it.

This is definitely illegal. There is a big warning on our FSA page letting us know the IRS can come after us for something like this and/or we could be fired.

[mommylamb]

From what I read if you leave the company at any point in time during the year, then you forfeit any money you did not use by that time. On the flip side, all your money get banked on day 1 even though it is taken out of your check in increments, so even though DH has had maybe $700 taken out we can spend the full annual amount


Yes, this has always been my understanding. That's one way the health accounts differ from dependent care accounts.


Some friends of ours had a similar situation a while back, and they ordered I think a defibrillator from Amazon, got the emailed receipt, then cancelled the order. As far as I know, they got reimbursed for the full amount on the receipt. It seemed a little iffy, honestly, but in the end it's really your money and the company would just get it if you didn't spend it in time, so I think I'd probably feel fine about it.

This isn't iffy. It's tax fraud. It's totally and completely illegal. They should be prosecuted for that.

[rin]

This isn't iffy. It's tax fraud. It's totally and completely illegal. They should be prosecuted for that.

Hmmm, interesting. It did seem sort of wrong to me at the time, but I don't know much about FSAs & figured I was just being judgmental or jealous that they got all that free money.

[chays]

I think you may need a doctors note for the breast pump, but mine was covered last year. Why not do the Lasik! ESPECIALLY since it will essentially be free!? Like PPs mentioned, you can use all your money now and if you leave the company, you don't pay it back!

[09Mom]

I think you may need a doctors note for the breast pump, but mine was covered last year. Why not do the Lasik! ESPECIALLY since it will essentially be free!? Like PPs mentioned, you can use all your money now and if you leave the company, you don't pay it back!

That's what I'm trying to figure out is with the change in the law last week if you still need a doctors note. I do plan on keeping the pump.

We think it's a matter of a week or so before Dh leaves his job so I don't think we have time to figure out LASIK. Years ago he was not a candidate but he's hoping technology changed.