| Author |
Message |
    
wendy
Supporter
Username: Wendy
Post Number: 2273
Registered: 5-2001
| | Posted on Wednesday, April 5, 2006 - 1:08 pm: | 
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For those with flexible health savings accounts, do you know if you paid a bill in 2006 but the date of service was in 2005 can you submit the bill for the 2006 year or can you only submit paid bills in 2006 for services rendered in 2006?
I could probably find this out myself but I'm busy getting my tax stuff together and was hoping to rely on the kindness of the board....sportsnut type of people, etc. Thanks much. |
Sherri De Rose
Citizen
Username: Honeydo
Post Number: 97
Registered: 11-2005
| | Posted on Wednesday, April 5, 2006 - 1:36 pm: |
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HSA's go by the year in which the service was provided. However, you have (I believe 90 days) in which to apply for reimbursement into the following year from the previous year. (It is now April, so if it is 90 days, your time is up) |
sportsnut
Citizen
Username: Sportsnut
Post Number: 2360
Registered: 10-2001
| | Posted on Wednesday, April 5, 2006 - 1:39 pm: |
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Generally expenses incurred within the plan year are eligible for reimbursement for that year i.e. the expenses must be incurred in 2005 to be eligible for withdrawl from the 2005 plan. However, there are exceptions to that general rule. One is for orthodontia the other is if your company has adopted the new 2 1/2 month grace period, which allows you to incur an expense within the first 2 1/2 months of the following plan year and still seek reimbursement from the prior year's plan. Clear as mud right?
Basically if the expense was incurred in 2005 you can request reimbursement from the 2005 plan year. If your company has adopted the 2 1/2 month grace period then you may incur expenses up through 3/15 and still seek reimbursement from your 2005 plan. I'd ask your plan administrator about the 2 1/2 month grace period.
Our plan allows us to seek reimbursement for 2005 expenses if we file our paperwork by 4/17.
Hope that helps. |
wendy
Supporter
Username: Wendy
Post Number: 2274
Registered: 5-2001
| | Posted on Wednesday, April 5, 2006 - 1:53 pm: |
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Actually it doesn't. The reason I bolded 2006 in my question applies to the 2006 plan. If I had expenses incurred in 2005 but did not pay the bill (due to insurance/billing delays) until 2006 is that deductible in the 2006 plan year?
I had already maxed out 2005 year so that's not the issue.
I sort of knew what you both posted above but thanks anyway. If you have a sense of my real question I'm all ears. Thanks again, much. |
sportsnut
Citizen
Username: Sportsnut
Post Number: 2361
Registered: 10-2001
| | Posted on Wednesday, April 5, 2006 - 2:38 pm: |
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Wendy - this from the IRC proposed Regs. 1.125-2 Q&A 7(b)(6) -
6) Claims incurred. Medical expenses reimbursed under a health FSA must be incurred during the participant's period of coverage under the FSA. Expenses are treated as having been incurred when the participant is provided with the medical care that gives rise to the medical expenses, and not when the participant is formally billed or charged for, or pays for the medical care. Also, expenses are not treated as incurred during a period of FSA coverage if such expenses are incurred before the later of the date the health FSA is first in existence or the participant first becomes enrolled under the health FSA.
(emphasis mine)
It appears that since your 2005 limit has been exhuasted you are not permitted request reimbursement from your 2006 plan for an expense incurred in 2005 regardless of when you pay it.
Does that help? |
wendy
Supporter
Username: Wendy
Post Number: 2277
Registered: 5-2001
| | Posted on Wednesday, April 5, 2006 - 3:31 pm: |
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Thanks so much. It certainly does help and even makes sense unfortunately. It's not that I don't foresee using up our 2006 allowance, I just like to try to submit things sooner rather than later - sort of getting the float in a way. Thanks again sportsnut (and I received your PL - thanks). |
Jgberkeley
Citizen
Username: Jgberkeley
Post Number: 4527
Registered: 5-2001
| | Posted on Wednesday, April 5, 2006 - 4:28 pm: |
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Last I checked, NJ did not have HSA's.
Has that changed or are you all talking about NY accounts? |
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