Got screwed with dependent flexible spending account (venting)

[FiguringItOut]

So I just started new job yesterday.

At my old job I elected for $5,000 to be put away into the dependent flexible spending account.  That account is active through June 30th.  At my new job, the benefits don't start until August 1st.  So I am losing the month of July. 

The problem is, I just submitted for reimbursement from my old job flex account for the child care through June 2015.  Now, my kids are going to summer camp in July.  Their camp will be over by July 23rd.  And I can only submit expenses for the new job flex account incurred after August 1st, which I will have none of.

So I am losing $2,500 of tax free child care reimbursement. 

Nothing can be done about it, but I can still vent and complain for a little bit.

[StockBeard]

Sorry to read this. But, you know, money comes and goes. What matters is that your fundamentals are in place. Once you're frugal, it's interesting how the occasional "loss" is not such a big deal anymore.

[MDM]

Did you already contribute $5K to the account? 
  - If so, you can't contribute more anyway (per the IRS), and you should be able to get all that $5K back for expenses occurring this year.
  - If not, can you write the old company a check for the balance, then get it back after the summer camp?

[FiguringItOut]

Sorry to read this. But, you know, money comes and goes. What matters is that your fundamentals are in place. Once you're frugal, it's interesting how the occasional "loss" is not such a big deal anymore.

All true.  I actually don't think this is a "big deal".  Just felt like venting about it to a crowd that will understand.
Can't complain about my new job.  I came with a 25% raise.

[FiguringItOut]

Did you already contribute $5K to the account? 
  - If so, you can't contribute more anyway (per the IRS), and you should be able to get all that $5K back for expenses occurring this year.

No.  Only contributed $2.5K so far.

- If not, can you write the old company a check for the balance, then get it back after the summer camp?

It is too late anyway.  But, hypothetically, if I write a check, wouldn't then I be putting away after-tax money into the dependent flex account?  Just currious.

[MDM]

It is too late anyway.  But, hypothetically, if I write a check, wouldn't then I be putting away after-tax money into the dependent flex account?  Just curious.

Yes, that would be after tax money.  Seems silly.  The reason it might have been worthwhile is even sillier, and I don't recall all the details, but long story short: when I retired there was something about not contributing the full amount originally designated for a medical FSA that made whatever had been contributed inaccessible.  It was only one month so no big deal for us, and it seems you aren't losing anything that you already contributed.

So it goes....

[madamwitty]

Yeah, that sucks. Sorry.

I had a related problem when I went on an unpaid leave of absence for a few months and came back to the same company. Contributions from the 2nd half of the year couldn't be applied to the 1st half of the year and vice versa. Some portion of my contributions ended up non-reimbursable, which negated a large portion of the tax savings. C'est la vie.

I have a friend who missed the reimbursement application deadline one year (ultimately her fault, but the deadline was not as well advertised as it should have been.) She lost $5k of what should have been her money. My DCSA woes pale in comparison.

[I'm a red panda]

So you aren't losing $2.5k. 
You are losing the few hundred dollars you have to pay on taxes on that.

It sucks, but it really isn't that bad.

Can you reschedule the kids camp?

[Retire-Canada]

So you aren't losing $2.5k. 
You are losing the few hundred dollars you have to pay on taxes on that.

and getting a 25% raise at the new place.

Sorry but if this is all you have to b1tch about you are in a good place.

[music lover]

Did you actually get "screwed", or do you simply not meet the eligibility requirements that apply to all new employees??

[weseh]

Won't you have childcare expenses again come August / September? Or do you no longer need childcare?

We are way over the (laughable) $5k allowance, but my kids are still little and in full time care.

[I'm a red panda]

We are way over the (laughable) $5k allowance, but my kids are still little and in full time care.

Seriously laughable. I just put a deposit down for a daycare on my first kid, expected to arrive next January. It will cost us $12,500 a year.  For ONE.  And I live in IOWA.

Thankfully, it isn't a financial hardship for us (though seriously- that is a shit-ton of money); but this was a middle of the range daycare cost- I'd think people with much lower income than us could really use the tax break to a much higher degree!

[mm1970]

Wait, I'm confused.

So you've contributed $2500 already.  I assume you have gotten reimbursement for most of it?  I don't know what your childcare is.  Do you only use it for summer camp?

I guess if you only use it for summer camp, I can understand, if you haven't used up the $2500.

Flexible spending is use or lose, so yes, you don't use it, the company keeps it.

But if you have already used up the $2500, then you can just plan your deductions for the rest of the year, right?

When I last switched jobs, I was bummed that it was 2 years before my new company did the FSA.  At the time, I was one of 2 employees who would need it.

But it wouldn't matter for me.  My toddler is in daycare and I've already spent $5k this year on it.  Reminds me I need to submit for the final $3k so I'll get a check every 2 weeks.

[NorCal]

Wait, I'm confused.

So you've contributed $2500 already.  I assume you have gotten reimbursement for most of it?  I don't know what your childcare is.  Do you only use it for summer camp?

I guess if you only use it for summer camp, I can understand, if you haven't used up the $2500.

Flexible spending is use or lose, so yes, you don't use it, the company keeps it.

But if you have already used up the $2500, then you can just plan your deductions for the rest of the year, right?

When I last switched jobs, I was bummed that it was 2 years before my new company did the FSA.  At the time, I was one of 2 employees who would need it.

But it wouldn't matter for me.  My toddler is in daycare and I've already spent $5k this year on it.  Reminds me I need to submit for the final $3k so I'll get a check every 2 weeks.

One more thing to be grateful for.  You don't live in CA.  We pay $22,500 for one at a "reasonable" daycare here.

[Dicey]

Put another way FIO, would you have taken the job anyway had you realized this? I suspect the answer is YES, so why the need to vent, particularly here?