So upset. Somebody talk me down!

[HipGal]

We signed up for dh's company flexible spending account for medical last year. We signed up for $2000 because we knew dd was going to have heart surgery and we would certainly have more than that in medical bills. Somehow last year with the transition to two kids and what not, we never turned in our receipts. :

Dh's human resource person was saying for awhile that she thought we could get it back somehow (the money goes to the company if it is not used). But now she is saying that IRS laws say it is gone.

$2000. Gone. For nothing!!!!!

Why the (bleep) am I cutting out 50 cent coupons and cutting my own hair and whatever other little piddly things I do when $2000 can just fall out of my hands like that. I feel like a total idiot.

We are already enrolled for this year, but I am NEVER doing the flexible spending thing again. Forget it! Apparently I am not responsible enough to be trusted to turn in a few receipts on time.

[shelbean91]

You usually have until the end month following the end of the plan year (or something like that). We had to have all expenses accrued by 12/31, and all receipts turned in by 1/31- something like that. When did the benefit year end for him? The only upside of it, is that it was taken out pretax, so your taxable income was down a little bit. If you're already enrolled, just remember to submit the receipts as soon as they happen. You could also ask if they have a debit card link available. Ours had that for one year and it was really nice.

We could fax, mail, or scan/email the receipts.

Sorry this happened, it truly sucks.

[KnockedUpButtercup]

Oh, how I feel your pain! We decided not to do flexible spending again, either, but for a different reason...

We had money "left over" last year, so I had to go on a big shopping spree on December 31st (I bought a year's worth of allergy medicine, contact lenses, and condoms), but then a couple of months later DS2 was hospitalized for six days, and has been having very expensive specialist appointments and prescriptions ever since. We could really have used all that money I was forced to spend before the year was over! So we just have a special savings account for medical stuff now, instead; that way it will carry over from one year to the next. It will make our taxes a bit more complicated, but it's worth it not to risk losing the money or having to spend it all by Dec 31 then having big medical expenses early in the next year.

In the meantime, if anyone needs any allergy medicine...

Holly

[kijip]

For future reference- some employers have it set up so you get a VISA logo debit card tied to the account. You then use the card to pay for the purchase and they send you a reminder to send in the receipt for verification purposes. It's worth asking your HR admin if they could set it up that way. I worked for a small non-profit and they were still able to do it that way. It is a little easier than needing to come up with the money and then remember to get reimbursed. Hope this info helps someone.

[time4another]

It does take some getting used to, with receipts and all. You can "guess" as to the amount to put in too, doesn't have to be the $2000.

I really like ours, and have been using it for years...that is until DH "forgot" to re-enroll last year.: We could've really used it to...

Heather

[Knittin' in the Shade]

our plan this year moved to the debit card, and as long as you use it at an approved business (most pharmacies, hospitals, and doctor's offices) then you don't have to submit any receipts - it's awesome!

[BetsyS]

We have the debit card, too, which makes it very easy to use.

[Astrid1024]

You should DEFINITELY appeal that! There has got to be some way that you can reclaim your money. And you should write a letter to your senators and your representatives in congress, because that a federal matter having to do with the IRS. Your daughter had heart surgery and you have a new child? That's absurd that you will be penalized so harshly - It is robbery that they would take your money because you were late in turning in your receipts.

If it takes you ten hours to get it back, that $200/hr - unless you are surgeon or a lawyer, it will be worth your time.

Good luck!!!!!

[Nate'sMama]

Originally Posted by sarah.astrid

You should DEFINITELY appeal that! There has got to be some way that you can reclaim your money. And you should write a letter to your senators and your representatives in congress, because that a federal matter having to do with the IRS. Your daughter had heart surgery and you have a new child? That's absurd that you will be penalized so harshly - It is robbery that they would take your money because you were late in turning in your receipts.

If it takes you ten hours to get it back, that $200/hr - unless you are surgeon or a lawyer, it will be worth your time.

Good luck!!!!!

:

[kdabbler]

It's a hard lessen to learn. I know. We've lost money too Usually because of dh's slow record keeping. Imagine walking into Lenscrafters and buying two pairs of glasses and contacts for 6 months on December 31st:

I try to put it at an amount that is less than what we expect to spend. We have until March 31st to submit reimbursement claims for the previous calendar year. But you're right, it's only good if you claim it in a timely fashion.

Definitely look into whether or not you can appeal it or work your tax forms differently for this lost money. I feel your pain.

[Jilian]

I'm sorry mama. How is your dd doing? Is there any way you could appeal it based on circumstances? My DS had heart surgery too and we still have bills rolling in over a year later. How can they honestly expect you to get ALL the receipts in on time? There are so many different specialists involved in heart surgery and some take a long time to bill, especially if there is insurance involved because they have to settle w/insurance first. I agree with the mama who suggested writing your congressman. It really helps. We actually just wrote our congressman because we missed the deadline on a SSI claim by 8 days and he had the case re-opened for us. They really do have power to help you get things. Good luck and I hope your dd is doing well

[Knittin' in the Shade]

Originally Posted by sarah.astrid

You should DEFINITELY appeal that! There has got to be some way that you can reclaim your money. And you should write a letter to your senators and your representatives in congress, because that a federal matter having to do with the IRS. Your daughter had heart surgery and you have a new child? That's absurd that you will be penalized so harshly - It is robbery that they would take your money because you were late in turning in your receipts.

If it takes you ten hours to get it back, that $200/hr - unless you are surgeon or a lawyer, it will be worth your time.

Good luck!!!!!

It's part of the deal when you sign up for the FSA/HSA's, that you use it or lose it. I doubt very much that an appeal would work, unfortunately

[acegmom]

Unfortunately...

The reason it is "use it or lose it" is because you have FULL access to your entire FSA amount as of Jan 1, even if you quit your job Jan 2. And you do not have to reimburse your emplower for the unfunded amount. So, the risk is considered "shared."

Still, I would appeal. Start with the company's HR person and work your way up. Perhaps they can work around "the deadline" due to your circumstances.

Good luck mama!

Jill H. (lucky mom to Amelia 18, Camille 16, Evan 13, and Gracie 11!)

[llamalluv]

It's a shame that employees can't have access to MSA's that small business owners do....

[mamaofprincesses]

Our reimbursement account is automatic; anytime we have a co-pay at the doctor's, dentist's, or a pharmacy, we get a check in the mail a few weeks later. We can also submit receipts for vision and OTC drugs, but the big things are automatic.

Perhaps you could suggest that to your DH's company. What happened really sucks but I don't know of any way to fix it.

[McFeelings]

This won't help the OP but FYI for everyone else following along, keep those receipts even if you use the debit card for your FSA. Ours often asks for "verification" from such "questionable" sources like CVS and Walgreens. Actually, I've stopped using the debit card altogether because its less hassle to fax in a claim than go back, find a receipt and verify a claim.

Even though you got burned this time around, perhaps it is still worth doing with a smaller amount ($250 or so) for a few years until you get in the habit of turning in receipts in a timely manner. Because the money is tax-free it is like getting a 30% discount or so for all your medical expenses.

[gentlemango]

FWIW, HSA isn't use it or lose it. It's your own money, deducted from your salary pre tax & put into a special savings account in your name. You can use it to pay for any health costs, medications, or preventative wellness expenses. It belongs to you. It rolls over and accumulates over the years. It can even be used to pay for your nursing home as part of your retirement savings.

FSA is basically a pot of your employer's money that you can use to help cover your deductible and yeah, no rollover. It's not yours.

[Denvergirlie]

Originally Posted by gentlemango

FWIW, HSA isn't use it or lose it. It's your own money, deducted from your salary pre tax & put into a special savings account in your name. You can use it to pay for any health costs, medications, or preventative wellness expenses. It belongs to you. It rolls over and accumulates over the years. It can even be used to pay for your nursing home as part of your retirement savings.

FSA is basically a pot of your employer's money that you can use to help cover your deductible and yeah, no rollover. It's not yours.

FSA is your money, you have it deducted from your pay check, however it does have limits for reimbursement time periods as the OP has now learned. My employer doesn't gain any of it if I fail to submit for reimbursements, it goes to my insurance company.

I lost about $150 of my FSA money last year, In an effort to submit my recipts nice and neatly I tore of the date stamp on some of my Rx receipts. The date was needed to show proof of being used within the time frame. It sucks but the rules were clearly laid out and I didn't follow them, my fault not theirs.

[gossamer]

My FSA had an option you can sign up for to be automatically reimbursed for any Dr. visit or hospitalization an prescription. Maybe look into that. I am so sorry about the $2000. That must just make you want to cry.

[Ellien C]

I'm so sorry you lost the money - that totally sucks.

But I second the notion that you try it again for a lesser amount. It can be very much worth it to to use pre-tax money. We have one but we keep it underfunded so we always spend it all. DH has monthly prescriptions and he submits one huge bill at the end of the plan year for whatever portion of the last 12 months we have funds for. Walgreen's can printout a yearly receipt for you that has everything on it. It works out well for us. But I don't submit all of my expensive co-pays ($35-$50) each time. We just eat that because it IS too much of a hassle. We have no debit card option.

I agree with calling your rep, but it might not due any good. The plans are locked up that way.