Question of the Week

Posted by BAS - 27 April, 2017

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Q.- We offer a Dependent Day Care Flexible Spending Account Plan. An employee contributed to the plan, anticipating to use the full expense for her child’s summer camp. The employee terminated in May, before camp started. Can she be reimbursed for the camp expenses that are incurred after her termination of employment?

A.- It depends on the terms of your plan. A Dependent Day Care FSA may be structured to allow reimbursement of eligible expenses incurred after termination of employment, through the end of the plan year.  To be eligible for reimbursement, the camp expense must still be incurred in order for the individual to work or look for work.

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