Flexible Spending Accounts

GLC

We have a situation where an employee signed up with a chiropractor last year to have a series of chiropractic adjustments. The bill was $600 and the EE was given a payment plan where a monthly amount will be deducted from her checking account. The deductions are now coming out in 2007. Can those deductions that are coming out in 07 be used under the FSA for this year even though the contract was signed in 06?

awilliams

You'll have to look at your specific plan language, but generally the date the service was provided is what rules. Since the adjustments took place in 2006, it would be goverened under that plan year, not 2007.

Anne Williams
Attorney Editor
M. Lee Smith Publishers, LLC

Dutch2

I believe our ee's have 3 to 3 1/2 months in 07 to turn in all of their claims from 06; but as Anne stated it is the date of service that counts.

NaeNae55

Dutch is right. If your plan was amended to allow for the extra grace period, then even if the service occurs in early 2007 it can be added to 2006.

I haven't heard of anyone doing this though, except Dutch.

If you didn't do the amendment, then dates of service rule, regardless of when they are paid for.

Good luck!

Nae