FSA contribution question - changed jobs mid year

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I elected to contribute entire $2550 for 2017 at job#1. I have used it all towards an expensive orthodontist treatment. However, so far the paycheck contributions have been only $850. But the FSA card went through paid 2550 in January. I am changing jobs in a few weeks. Can I opt for FSA again at job#2. If so, how much - entire $2550 again or $1700 (2550-850)?

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isdpe said:   I elected to contribute entire $2550 for 2017 at job#1. I have used it all towards an expensive orthodontist treatment. However, so far the paycheck contributions have been only $850. But the FSA card went through paid 2550 in January. I am changing jobs in a few weeks. Can I opt for FSA again at job#2. If so, how much - entire $2550 again or $1700 (2550-850)?
  
You won the jackpot. You got paid 2550 with 850 contribution and you are all done with the old plan. Free money!

Now the FSA you would do is for the remainder of the year. Completely wipe from your memory anything about the first FSA and medical expenses incurred so far - you are starting a fresh life.

"However, an employee employed by two or more employers that are not members of the same controlled group may elect up to $2,500 (as indexed for inflation) under each employer’s health FSA. "

https://www.irs.gov/pub/irs-drop/n-12-40.pdf

$2,500 limit - $850 already contributed = $1,650 is what you can contribute for the remainder of 2017 at the new job.

N/M

PrincipalMember said:   
isdpe said:   I elected to contribute entire $2550 for 2017 at job#1. I have used it all towards an expensive orthodontist treatment. However, so far the paycheck contributions have been only $850. But the FSA card went through paid 2550 in January. I am changing jobs in a few weeks. Can I opt for FSA again at job#2. If so, how much - entire $2550 again or $1700 (2550-850)?
  
You won the jackpot. You got paid 2550 with 850 contribution and you are all done with the old plan. Free money!

Now the FSA you would do is for the remainder of the year. Completely wipe from your memory anything about the first FSA and medical expenses incurred so far - you are starting a fresh life.

  
This is true as long as the administrator of the FSAs of the two employers is not the same. If it is the same you are maxed out. 

You didn't actually get the 2550 from the first FSA yet did you? I didn't think you'd be able to go negative.

Drouo said:   You didn't actually get the 2550 from the first FSA yet did you? I didn't think you'd be able to go negative.
  
They did. An FSA isn't like a bank account, it's a like a benefit plan. The entire FSA election is available on the first day of the plan and you make the contributions to the plan during the year that will add up to that amount. But if you leave early, you don't have to repay any benefits you used (and you lose out if you spent less than you contributed).

So who eats the $1700 shortfall? Does the FSA administrator send a bill to the employer? Do they wait and see what is used and what is forfeit at the end of the year by all plan participants? Or something else? Really interested in the nuts and bolts.

Stubtify said:   So who eats the $1700 shortfall? Does the FSA administrator send a bill to the employer? Do they wait and see what is used and what is forfeit at the end of the year by all plan participants? Or something else? Really interested in the nuts and bolts.
Yes, the employer has to pay this. However, we never had a case where the forfeitures were less than added costs in situations like this (worked HR in a medical group with 1K employees). The benefits administrator would cut a nice check each year back to us (the employer). We put the money into our "employee appreciation/party planning" fund and used it on employees. It felt wrong to keep the money for our own purposes.

Stubtify said:   So who eats the $1700 shortfall? Does the FSA administrator send a bill to the employer? Do they wait and see what is used and what is forfeit at the end of the year by all plan participants? Or something else? Really interested in the nuts and bolts.
  
It probably varies by FSA administrator, but at least one provider drafts approved FSA distributions from the employer daily. Depending on how the employees collectively use the benefit, the employer may have a surplus or deficit of FSA funds at any given time.



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