Question of the Week

Posted by BAS - 13 October, 2016

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Q.- An employee’s child is 26 and turning 27 this year.  The employee wants to be reimbursed from his FSA for a health expense for his child. The expense was incurred when the child was 26.  Why won’t our FSA allow the reimbursement?

A.- An eligible health FSA expense must be incurred by the employee, the employee’s spouse, the employee’s child who has not attained age 27 as of the end of the employee’s taxable year, or the employees’ tax dependent.  This is required by Code section 105(b). 

So, assuming the employee has a calendar year tax year (which most individuals do), if his child turns age 27 at any time during 2016, no expense for the child is eligible to be reimbursed in 2016.  This is the case even if the child is 26 when the expense is incurred.


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