Q.- We have an employee taking a leave in the fall, and she has a health care flexible spending account plan. How do we make sure that she takes out from the plan only the amount she has contributed when she goes on the leave?
A.- Unfortunately, you cannot limit her reimbursements to the amount she contributed to the health care FSA. Under IRS rules, the full plan year election is available for reimbursement at all times, to the extent not already reimbursed. When the participant takes a leave of absence, whether her participation during the leave continues depends on your policies and procedures, and if the leave is a leave under the FMLA. In any case, eligible expenses incurred during her participation in the health FSA (during the plan year before the leave or during the leave if participation continues) may be reimbursed up to the full amount of her election for the year.