Hello,

My question is regarding when funds in a LPFSA are available for expenses. My assumption is that the full funds would be available on the first day of the plan year (1/1) even if you have not made the payroll contributions-like a general purpose FSA.

Former employer is denying our expenses because they say there were not enough contributions to cover the expense once my husband left their employ.

I cannot find/locate anything from the IRS that specifically speaks to the availability of funds in a LPFSA. Pub. 969 speaks about FSA's in general, of which I assume the LPFSA falls as well.

Any help would be appreciated as I have a few months to appeal, but would like to source the IRS if I can, to substantiate my claim.

Thank you,

Paula

The full annual contribution amount is available to you on the first day of the plan year. If you terminate employment you may file claims for dates of service received up to your termination date. If you terminate employment during the plan year you will have until March 31, not April 15, of the following year to submit qualified expenses incurred up to your termination date. You may obtain a Flexible Spending Account Claim
Form from TaxSaver Plan?s website at www.taxsaverplan.com or
submit claims through TaxSaver Plan's online claim submission
option.

Thank you for your response Do you know of a specific IRS source that I might site to the employer?

Thank you again,
Paula

Sorry no; I think that IRS pub 969 is not very helpful in finding out a solution for your specific individual situation.

You may Visit stateoftn.payflexdirect.com, or call directly at 855-288-7936

I'll give it a try. Thanks again.