Fleixble Spending Account Problem

[dragonwalker]

Last year I contributed $750 to a flexible spending account. I was anticipating some medical expenses that ended up not happening so that's good. Toward the end of 2014 I called our HR servicing department to discuss options for medical expenses since I was aware that these funds are use it or lose it type situations.

I was informed by the representative that laws have changed! I will be allowed to keep up to $500 and carry it over to next year. Great news, so I thought. I keep about $400 into 2015 happy in the idea that I will have plenty of time to use it. Then, I get an e-mail stating that these funds will be lost by June if I don't place a claim for expenses in 2014.

I'm in the midst of having the HR department retrieve the records of phone conversations I had. However I fear that even if proven that I was mis informed I would still be at fault. I'm trying to considering options to try to save this money.

I could just forget about it but it something I will never forget about and feel terrible about being duped. I have thought of one possible solution.

My mother is an acupuncturist and I'm considering asking her to create records showing that I was treated by her last year and to make receipts to that effect. A lie. I can't redeem any money without providing these receipts. I know it's wrong but what are the chances I will be caught? I assume I would have to be audited and I imagine it would take quite a bit of digging to determine that the doctor was my mother and I'm not even sure how they could proof I wasn't treated.

I can not claim any other legitimate medical expenses and I will lose the money otherwise short of some miracle from the HR department. 

Does anyone else have any other suggestions or thoughts on my plan?

[Workinghard]

You still have time! Is there anything that you've been putting off? Dental work? Glasses? Prescriptions?

[nobody123]

So not only do you want to commit fraud, you want to drag your mother into it?

You messed up because you didn't read the rules or understand them fully.  Put your big person pants on and accept the consequences.  I'm guessing you'll never make this mistake again.

[Louisville]

So not only do you want to commit fraud, you want to drag your mother into it?

You messed up because you didn't read the rules or understand them fully.  Put your big person pants on and accept the consequences.  I'm guessing you'll never make this mistake again.

This.
Get everyone's teeth cleaned, get some new glasses, get annual physicals, get a dermatologist to check your moles, etc., but don't try to cheat. It's not worth it.

[I'm a red panda]

My mother is an acupuncturist and I'm considering asking her to create records showing that I was treated by her last year and to make receipts to that effect. A lie. I can't redeem any money without providing these receipts. I know it's wrong but what are the chances I will be caught? I assume I would have to be audited and I imagine it would take quite a bit of digging to determine that the doctor was my mother and I'm not even sure how they could proof I wasn't treated.

You certainly shouldn't do it now that you've posted your intentions to commit fraud on a public internet site.

Of course, ethically, you shouldn't do it even if you didn't go around telling people.

[NotJen]

To those suggesting glasses or dental cleanings - expenses must be from 2014 to use the leftover money, I believe.  However, having until June to claim your 2014 expenses seems pretty long - we only get a month or two.

Don't lie. Consider it an expensive lesson in trusting your HR department. In the future, get everything in writing.

Up to $500 can be rolled over to the next year now, BUT your company's plan has to specifically allow it. If they allow it, you should have gotten written notice of the change in your plan documents.

At least, that is what happens at my company.

[catccc]

I think you need to go back and check if you can use the funds for 2015 expense through June, or if it is really only for 2014 expenses.  It seems like some of the responses are assuming you have til June 2015 to incur the expenses.  I think you said otherwise. 

But having 6 extra months just to submit seems excessive.  I would call the provider and ask, and do it soon.  I could see the plan having an early 2015 date to spend (say, 3/31/15), and a slightly later date to submit (6/30/15?)

My plan has a 3/15/15 spend date and a 3/31/15 submit date for FSA funds set aside in 2014.

The plan rules are the plan rules, it doesn't matter what some person in HR told you. 

If it is only for 2014, can you go back and find stuff that you could claim?  Some plans allow mileage to Dr. appointments, too.  If  you purchased any first aid supplies, sunscreen, etc, see if you can find those receipts and submit them.  Any copays?

If you still have time to spend it, it's easy to hit $400.  Just go to drugstore.com and stock up on FSA eligible stuff. 

[APowers]

In the future, get everything in writing.

QFT

[Villanelle]

So the price of your and your mother's ethics and integrity is $400.

This not only crosses the line from "frugal to cheap", but  ng. it is so far past the line that you can't even see the line from where you are considering going.