1) I sign up for a Flex Account on 7-1-07 and allot $1000 (to be deducted from paychecks for the rest of the calendar year)

2) On 8-1-2007, I use all $1000 of that money for authorized medical expenses.

3) On 9-1-2007, before i've come anywhere close to paying the $1000 into my flex account (that I've already spent), i quit and take a different job.

What happens? Do I just have to pay back the difference with my post tax money? Does it matter that my new job also has flex accounts?

7/18/2007 11:55:09 AM

the way mine works is you put x amount in every paycheck to total $1000 per year, so if you leave the job you don't have the whole amount in the account, just what you put in, and that is eligible to be used on the expenses. I pay up front and get the pre-tax amount at the end of the year (or whenever I file the claim).....I have to submit a claim with proof of purchase for each visit to get reimbursed......

If you quit, they just pay out what you've put in....most companies have a separate administrative company to run the plans.



[Edited on July 18, 2007 at 12:11 PM. Reason : .]

7/18/2007 12:08:49 PM

I would think they deduct any balance owed from your final paychecks.

7/18/2007 12:40:27 PM

You don't get a payout if you quit with money left over so................

7/18/2007 2:19:39 PM

my husband and i just had this happen.
we had gone over by a few hundred on our flex and then he changed jobs.

this is actually the risk the flex company takes. if you terminate early, you do not get any money you have paid into it over but you are also not responsible for any money in the hole (at least thats how it worked for his company).

You should of course read the fine print of your paperwork, and talk to HR but we were pleased as it basiclly saved us ~$300.

7/18/2007 2:35:52 PM

bttt

7/19/2007 4:18:09 PM

Unipride is correct. I had the exact same thing happen with my job 6 years ago when I left Ericsson. Basically, if you know you are leaving early in the year, spend that flex money!!

7/20/2007 3:10:00 PM

so i spend the money (that i haven't even put in yet), and dont have to pay it back? and the flex company takes the hit, not the employer?

7/20/2007 5:30:17 PM