Author Topic: FSA question  (Read 2430 times)

FB2020

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FSA question
« on: September 30, 2016, 10:10:01 PM »
Hello

I maxed my contribution (2550/yr) for 2016 year, and used it all up by August. Then in September I left that job and joined another one.

Now the new employer has the FSA option too, for which I signed up for $700 for remainder of 2016 (I think I will have that much).

Is there any issue with doing this? I read up and IRS site says that as long the companies are not linked to each other, I can open a new FSA account for the same year.

But was checking to see if someone has any experience on this.

MDM

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Re: FSA question
« Reply #1 on: September 30, 2016, 10:42:09 PM »
No experience, but the US Code also seems to support the "multiple FSAs allowed if employed by multiple distinct employers" interpretation.

Need2Save

  • Bristles
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Re: FSA question
« Reply #2 on: October 01, 2016, 08:03:18 AM »
FB2020 - can you clarify if you contributed the full $2,550 before August? Or you simply incurred the full $2,550 in eligible claims and were reimbursed by employer #1 before leaving?

Need2Save

  • Bristles
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Re: FSA question
« Reply #3 on: October 01, 2016, 08:14:10 AM »
Update - Although not really spelled out in Publication 969 (the one that covers FSA, HSAs and the like) it is covered in IRS bulletin 2012-26.

"However, an employee employed by two or more employers that are not members of the same controlled group may elect up to $2,500 (as indexed for inflation) under each employer’s health FSA."

So as long as your two employers are not related to one another through legal status (part of a larger group of employers), then you may elect $2,500 under employer #2 in the same year.

SOURCE:  https://www.irs.gov/irb/2012-26_IRB/ar09.html

FB2020

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Re: FSA question
« Reply #4 on: October 01, 2016, 01:36:43 PM »
FB2020 - can you clarify if you contributed the full $2,550 before August? Or you simply incurred the full $2,550 in eligible claims and were reimbursed by employer #1 before leaving?


I incurred the full amount, but contributions were around 1800 since it was only thru August.

FB2020

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Re: FSA question
« Reply #5 on: October 01, 2016, 01:37:33 PM »
Update - Although not really spelled out in Publication 969 (the one that covers FSA, HSAs and the like) it is covered in IRS bulletin 2012-26.

"However, an employee employed by two or more employers that are not members of the same controlled group may elect up to $2,500 (as indexed for inflation) under each employer’s health FSA."

So as long as your two employers are not related to one another through legal status (part of a larger group of employers), then you may elect $2,500 under employer #2 in the same year.

SOURCE:  https://www.irs.gov/irb/2012-26_IRB/ar09.html


That's what I read too, so hopefully it should be okay. o, the employers are not related in any way

Enigma

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Re: FSA question
« Reply #6 on: October 03, 2016, 11:00:20 AM »
A lot of employers that offer an FSA also offer a HSA.  If that is the case then open the HSA and stop the FSA.  Same benefits but without everything having to be spent at the end of the year.

FB2020

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Re: FSA question
« Reply #7 on: October 03, 2016, 12:19:26 PM »
A lot of employers that offer an FSA also offer a HSA.  If that is the case then open the HSA and stop the FSA.  Same benefits but without everything having to be spent at the end of the year.

The new employer doesn't offer the HSA. The old one did, but I didn't choose it at the time (hadn't discovered MMM then :)


 

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