Q.- We have a calendar year health flexible spending account plan. An employee just received a bill for a surgery he had in 2014. Can he be reimbursed from his 2015 health FSA for the expense?
A.- No. Expenses must be incurred during the plan year, or the grace period if the FSA includes a grace period. Even though the employee received a bill in 2015, the expense was incurred in 2014 when he had the surgery. The expense is not eligible to be reimbursed from the 2015 health FSA.