Q.- An employee resigned and still has a balance in her parking reimbursement account. Can she continue to use the account? What if she has a claim she incurred before terminating but didn’t submit it yet?
A.- The IRS prohibits terminated employees from participating in a parking reimbursement plan after termination of employment and all unused funds must be forfeited. However, a plan can include a “runout” period to allow submission of parking expense claims incurred on or before the termination date.
Benefit Allocation Systems (BAS) provides best-in-class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
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This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.