Comments on: Changing or Losing Job? Don’t forget to use your FSA dollars!

By: Anna Ngo

Anna Ngo — Sun, 18 Apr 2010 04:09:57 +0000

So what if you were fired and haven’t filed any claims yet? Last year when I did the FSA, I saved all my receipts and filed just one claim near the end of the period. Now I have no job and I’m not sure if I am supposed to try and spend the money before the end of the month (my HR person seems to think that all benefits apply till the end of the month) or what. And do I still have till the end of the period (I think it’s some time in July) to submit my claim? I have spent some stuff but not filed anything and the stuff I have spent has all been small potatoes (Rx meds). I put in 1k but I have no idea how much of it I’ve paid in thus far. Sounds to me like I lose.

By: Just Me

Just Me — Fri, 24 Jul 2009 13:04:58 +0000

I am at a job where I was offered a new position for a 20K/year pay cut. It turned out to be more than that as I was also asked to work less hours in a week. All in all, my checks were less than half of what they were before I started the new position. I wasnt “forced” to take the new position but was told that the administrator would be “very upset” if I didn’t except it. After the announcement of the “new pay rate” for me, I didn’t want to accept the new position but felt pressured to. After all, what would my work environment have been like if I hadn’t accepted the offer? Prior to, I had used up my entire allotment of FSA. I had surgery and accumulated some hefty medical expenses. I didn’t use it with the intensions of leaving the job and “cheating the system.” I used it because I needed help with medical expenses. After I took the new position and checks were small, my husband informed me that we were having to dip into our nice savings every month just to make our monthly bills. When I became aware of this, I went to my employer and asked them for a raise and increase in hours so that I could stay in the position. I was told that I would “have something worked out in 3 days” but that never happened. So, to show good faith to my husband, I sent out a couple resumes. I felt obligated to my family to change my income. The result was a job offer that far exceeded anything I ever expected and I had to accept it. When I submitted my letter of resignation, I was given the “it’s morally right for you to return the extra money used” speech. I asked to make a deal in exchange for the unused sick leave that I had accumulated (money they will gain on my behalf). I was told “that was a benefit that was extended to you should you need it and you didn’t so it will be lost.” And I have to say, I feel the same about the medical FSA. I needed that. I feel I was cheated by my company. Does anyone have any thoughts on my situation? My husband, very ethical, feels I shouldn’t pay it pack. He considered all aspects in my situation before he made his decision. I think he might be right. There are no “cut and dry option 3 or 4.” I think I fall inbetween.

I’d appreciate any comments. Thanks.

By: Micah

Micah — Thu, 18 Jun 2009 15:36:41 +0000

Wow. I just stumbled upon your website reading an piece you wrote about negotiating salary at a new job. I liked what I read and decided to take a look around a little more and am very glad I found this article. I was curious as to how that works when you basically submit claims for more than the amount that has been contributed thus far. Interesting stuff. I agree with what you are saying 100%. Its kind of a twisted system. I guess its kind of a nice thing if they let you go assuming you made all your claims. I was planning on just stocking up on flats of toothpaste and contact solution at the end of the year just to make sure they didnt get to keep my extra! Now I can spread out my toothpaste purchases over the year instead.

By: Cathy @ Chief Family Officer

Cathy @ Chief Family Officer — Mon, 09 Mar 2009 03:58:12 +0000

I think the key here is intent. When you calculated your contribution to the FSA, did you do so knowing that you would be leaving the company and have the intent to spend more from the FSA than you put in? That seems unethical, because it goes against the intent of the agreement (even if it’s not technically fraud). But if something comes up during the year, why shouldn’t you be able to take advantage of a benefit that was agreed upon? After all, that’s a binding contract.

By: TaxRascal

TaxRascal — Thu, 05 Mar 2009 18:33:23 +0000

Seems like a pretty crazy rule. It basically means companies are taking a bigger risk when they hire someone, because they have to give them a year’s worth of spending up front. Whoever came up with this was probably pretty well-meaning, but the main effect is that it costs jobs — not that people get fired, but, less visibly, that they don’t get hired.

By: Clever Dude

Clever Dude — Thu, 05 Mar 2009 13:36:06 +0000

@Plonkee, we both said the same thing, so there’s no disagreement. “Personally, I don�t think it�s ethical to use someone else�s money without repaying it, and that goes for both the company keeping my money or me using the company�s, regardless of the law.” I guess your disagreement might be with me calling it unethical, but my thought is just because you’re both cheating each other doesn’t mean it’s right. Plus, you’re not both cheating each other at the same time; either you get the extra cash or your company does. It’s just that you both agree to the chance of losing money when you sign up for the FSA.

Perhaps “unethical” is too strong of a word, but I’ll need someone’s help to think of a better one.

By: plonkee

plonkee — Thu, 05 Mar 2009 12:28:18 +0000

I sort of disagree.

I agree that not ethical to use someone else�s money without repaying it, but that applies to the company as much as it does to you. In this case I think that if both parties act the same way then it is at least fair. The company isn’t going to reimburse you the money, in return they might fall foul of the *be done by as you did* rule. Them’s the breaks.