Section 125 question about "incurred dates"

tlc612

Hi All.
I am new to HR and I have received a reimbursement form from one of our employees who wants to receive reimb. for services from Sept. '03. He paid for the services in June '04. So, in acuality, the "expense" was incurred in 2004 but the "services" was incurred in 2003. Does anyone know if I can reimburse him? I've asked a TPA and he says No, but the employee told me he's done it before. I appreciate any answers I can get!!
Trish
Colorado

irenesmsaclaims

The expense was incurred in Sept. 2003. Section 125 rules are clear that it is not when the participant is billed or when he/she pays the bill.The date of the services is the date the expense is incurred.

LindaS

Agree with the previous post. The "incurred date" refers to the date the service was provided, or the date the expense was incurred, not the date that it was paid.

tlc612

Thanks guys! I appreciate the feedback. Makes my job easier! ;-)