My wife has been on my health insurance. She got a new part time job. She's staying on my health insurance. Can we add to my FSA as a qualifying life event? Our benefit administrator is Aon-Hewitt who is awful, and they said that even though the plan says change of spouse job is a qualifying life event, it only applies if my own company (even though it doesn't say that there).
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Senior Member - 10K
posted: Sep. 14, 2016 @ 5:18p
I don't think this is considered a life changing event. Something like she lost her job, or her new job cancelled insurance.
posted: Sep. 14, 2016 @ 5:27p
The qualifying event has to be related to the change you make. I would do it if they let me and then if audited would use argument with the irs that the event related to the change because my wife made more money so now I can afford to fund fsa or something like that.
May not work but worth a try. And small chance of audit.
However if the benefit administrator won't let you do it it's kind of a moot point. I've found arguing with fsa companies to be an exercise in futility with no real recourse as an employee because your hr is in charge of the contract, and no fsa issues are worth getting in a fight with your company's hr over.
posted: Sep. 14, 2016 @ 7:16p
Dependent Care FSA you should, healthcare probably not. Also, there ought to be a form from your payroll/HR dept not the benefits provider.
posted: Sep. 15, 2016 @ 7:01a
I am not sure if this will help or I may be incorrect. But I looked up QE/Qualifying event for spouse.
Qualifying Events for Spouses Voluntary or involuntary termination of the covered employee's employment for any reason other than gross misconduct Reduction in the hours worked by the covered employee Covered employee's becoming entitled to Medicare Divorce or legal separation of the covered employee Death of the covered employee
I hope this helps.
posted: Sep. 15, 2016 @ 7:19a
I will add, if they do let you make the change, be aware you can't use any new funds for expenses previous to the date the change is made. I made that mistake one year, it was October and my wife had a change in jobs. It was a qualifying event so I increased my contributions because we'd already used all the funds in the FSA for that year and had expenses not covered. Needless to say when I went back to submit those expenses after the increase, they rejected the claims because they where incurred previous to the increase.
It's the middle of September now, so if they do let you do the increase, make sure whatever you change it to covers expenses from the official start date until end of the year.
If they don't let you do the increase, well I'm sure you annual enrolment is right around the corner anyway.
posted: Sep. 15, 2016 @ 7:56a
zonacat said: The qualifying event has to be related to the change you make. I would do it if they let me and then if audited would use argument with the irs that the event related to the change because my wife made more money so now I can afford to fund fsa or something like that.
May not work but worth a try. And small chance of audit.
The chance of an audit is zero because there are no income tax reporting requirements for FSA; the IRS relies on the benefit administrator to run the plan in accordance with the rules.
posted: Sep. 15, 2016 @ 8:10a
Changes in benefit elections have to flow from the event, it's not a free-for-all just because you had any sort of change. So, for example, if she elects a healthcare plan at her new job, that would be a good reason to change your FSA election. If nothing is changing in your family's health coverage, then you don't have any qualifying event to change your FSA election. Zonacat's argument that now you have more ability to save doesn't hold water for a use-it-or-lose it FSA.
Senior Member - 4K
posted: Sep. 15, 2016 @ 9:35a
doveroftke said: ....if she elects a healthcare plan at her new job, that would be a good reason to change your FSA election. If nothing is changing in your family's health coverage, then you don't have any qualifying event to change your FSA election. ...
Even though you feel your plan administrator is being difficult, as doveroftke pointed, if nothing is changing in coverage, how is that a life event?
The only way I could see a QLE is if SHE elects coverage at her new job. Financially this normally makes sense since adding yourself to an insurance package is a lot cheaper then adding your spouse to your coverage, and especially true if your company charges you an extra fee per month/pay period if your spouse is offered insurance.
The extra fee is something you should look in to for the upcoming enrollment period. My company started this about 3 years ago.
posted: Sep. 17, 2016 @ 12:26p
Thanks everyone for your comments. The reason they were being difficult is because they were saying nothing is changing on my plan, which is what you all said. Since her new job is only part-time, without subsidies for benefits, we are not electing coverage in her new job.
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