Q.- An employee participates in our health flexible spending account plan. He wants to be reimbursed for an expense incurred by his daughter. However, he is divorced and his daughter lives with his ex-wife. His ex-wife claims the daughter as a dependent for tax purposes. Can the employee still submit his daughter’s expenses for reimbursement from his health FSA?
A.- Yes. The expenses of an employee's child who is under age 27 as of the end of the taxable year will qualify for reimbursement from a health FSA even if the child does not qualify as the employee's tax dependent.