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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29638
Experience:  Taxes, Immigration, Labor Relations
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As an employee of a hospital, I contributed $2500 in the year

Resolved Question:

As an employee of a hospital, I contributed $2500 in the year 2010 to my FSA. I had to spend around $6000 for doctor's visits and prescription medicines.
Because of various reasons I was late to submit my bills for reimbursement which I did in April 2011 instead of March end 2011. The company that runs this program forfeited all my $ 2500 ( hospital contributed nothing ). Do I lose that money just because I was two weeks late in submission?
Even you do not take away 100 % of our hard earned money.
Submitted: 5 years ago.
Category: Tax
Expert:  Lev replied 5 years ago.
Hi and welcome to Just Answer!
FSA accounts are usually funded through voluntary salary reduction agreements with your employer. No employment or federal income taxes are deducted from your contribution.

Unfortunately FSA accounts are limited by some IRS rules. Flexible spending accounts are “use-it-or-lose-it” plans. This means that amounts in the account at the end of the plan year cannot be carried over to the next year. However, the plan can provide for a grace period of up to 2½ months after the end of the plan year. If there is a grace period, any qualified medical expenses incurred in that period can be paid from any amounts left in the account at the end of the previous year. Your employer is not permitted to refund any part of the balance to you.
These money are returned to your employee.

The attorney whom you hired should know these rules and should advise you that you would not able to get your money back. I suggest to request a refund of $200 charge that was unnecessary and would not provide any result.
Unfortunately - that all you may do at this point.
Sorry if you expected a different answer.
Customer: replied 5 years ago.
I fully agree that one cannot receive the balance. Why don't people answer my question right? It is not that any money is remaining from my 2010 contribution. I DID SPENT IT. IT IS JUST THE QUESTION OF REIMBURSEMENT FOR THE MONEY I SPENT. THE REASON THEY GIVE IS I WAS TWO WEEKS LATE IN REQUESTING IT.
Expert:  Lev replied 5 years ago.
I feel sorry for your situation.
I am not sure why you did not receive a correct answer. Either the person you spoke was not familiar with URS rules or for some reason did not want to provide you any information.
According to IRS rules a claim for reimbursement should be made within grace period.
If you did not timely submit the claim - funds are forfeited for you - and returned to your employer. As I mentioned above - according to IRS rules - your employer is not permitted to refund any part of the balance to you.

Please understand that I only explain the tax law. I may not be held responsible if the law does not solve your specific issues in your favor.
Unfortunately - there is nothing you may do - but request to refund fees you paid to the attorney.
Lev and other Tax Specialists are ready to help you