Q. - My daughter is getting braces on her teeth. The orthodontist requires us to pay an up-front amount, and then pro-rate the remaining cost over the length of her treatment. May I be reimbursed from my health FSA for my up-front and installment payments?
A. - Most likely, yes, if permitted by the terms of your plan. A health FSA may (but does not have to) permit the reimbursement of advance payments for orthodontia services, so long as the participant has actually made the payments. The service will be deemed to be incurred when the employee makes the advance payment. The IRS also permits reimbursement of the subsequent installment payments over the course of treatment. You will still have to provide documentation of the services and proof of payment, and you may be required to submit a payment schedule.
