Q.- An employee elected to contribute $2,000 to his FSA for the year and has not been reimbursed for any amount yet. He just terminated employment. His son is getting braces at the end of the summer, and he asked if he can submit receipts for the braces. Can he?
A.- To be eligible for reimbursement from the FSA, the expense must be incurred while the individual is participating in the plan. If the son is getting braces at the end of the summer, the individual will not be participating in the plan, unless he elects to continue FSA coverage under COBRA. If the former employee wants to be reimbursed for the braces (which will be incurred after his termination of employment), he must elect to continue FSA coverage under COBRA and pay the premium for FSA coverage (which may include a 2% administrative charge).